Skip to Main Content

Print | Bookmark | Email | Font Size: + |

March 20, 2014

Medical Necessity Denials and Appeals

Local Coverage Determinations (LCDs) are created by the CGS medical staff in collaboration with clinicians appointed to assist by medical associations and societies. They are intended to help providers by identifying indications that have been shown to be medically appropriate for the procedure for which they are created. LCDs also include frequency parameters and, in some cases, accompanying billing instructions.

Claims submitted to CGS that fall outside of either the allowed diagnoses, CPT/HCPCS codes or frequency limitations identified in LCDs are denied for medical necessity.

Upon data analysis, we have found an increase in the number of appeals submitted for medical necessity denials. Following are a few reminders:

  • LCDs are available for Kentucky and Ohio. Currently, CGS has 72 LCDs.
  • Claims submitted with allowed diagnoses, CPT/HCPCS codes and/or are within published frequency limitations that are denied in error may be submitted for Redetermination
  • If you feel we should expand an LCD to change frequency parameters or allow coverage for additional procedures or diagnoses, you may follow the LCD Reconsideration Process. It is important to include any peer-reviewed literature which supports the change you are requesting.

CMS creates National Coverage Determinations (NCDs)External Website to communicate coverage information applicable at a national level. While most NCDs do not include specific diagnoses, they do identify allowable indications and frequency parameters. There is an established process in place to request new NCDs or changes to existing NCDs. That process can be found here.

Reference: CMS Program Integrity Manual (Pub. 100-08), chapter 13External PDF

  • Rationale for developing NCDs: section 13.1.1
  • Rationale and guidance for LCDs: section 13.1.3

spacer

26 Century Blvd Ste ST610, Nashville, TN 37214-3685 © CGS Administrators, LLC. All Rights Reserved