Handling a health insurance claim denial
It’s not unusual for insurers to deny some claims or say they won’t cover a test, procedure, or service that doctors order. The new health care law gives consumers more information and the right to appeal a claim denial. For example, an insurer must notify you in writing of a claim denial within 30 days after a claim is filed for medical services you’ve already had, and within 72 hours for urgent care cases.
Under the health care law, health plans that are not grandfathered (those that began on or after September 23, 2010) must have an internal appeals process that:
- Allows consumers to appeal when a health plan denies a claim for a covered service or rescinds (takes back) coverage
- Gives consumers details about the reasons for the denial of claims or coverage
- Requires plans to notify consumers about their right to appeal and how to begin the appeals process
- Offers consumers a way to speed up the appeal in urgent cases
If the insurer denies a claim, it must explain your right to appeal the decision. If you ask for it, they must give you all the information about the decision. Plans that were started before September 23, 2010 (grandfathered plans) are still appealed under the old rules of coverage.
Before you appeal, you may want to take these steps:
- Ask your insurance company’s customer service representative for a full explanation of why the claim was denied.
- Review your health insurance plan’s benefits. You may need to look at the more detailed Summary of Benefits notice.
- If your child’s plan is through an employer, contact the health plan administrator at work to find out more about the refusal.
- Ask the child’s doctor to write a letter explaining or justifying what’s been done or has been requested. Keep a copy of this letter in case an appeal is needed later.
- Ask your insurer if your employer’s health plan is self-insured, and on what date the plan started. (This is to learn if the new law’s requirements apply or if the plan is grandfathered.) This will help you figure out which rules apply and which appeals process to follow.
- Talk to your state insurance department or the agency that regulates your insurance company to verify that the insurance company has acted properly and the denial has not been made in error. (See the section called “ Who regulates insurance plans?”)
You can then re-submit the claim with a copy of the denial letter and your child’s doctor’s explanation, along with any other written information that supports using the test or treatment that’s been denied. Sometimes the test or service will only need to be “coded” differently. If questioning or challenging the denial with these methods doesn’t work, you may need to:
- Put off payment until the matter is resolved. Keep the originals of all the letters you get. Your child’s cancer care team may be able to help you make copies if you need them.
- Keep a record of dates, names, and conversations you have about the denial.
- Formally request an internal appeal (or internal review) by the insurance company. Complete any forms the insurer requires, or write them a letter explaining that you’re appealing the insurer’s denial. Include your name, claim number, and health insurance ID number, along with any extra information such as a letter from your child’s doctor. Your child’s cancer care team members may be able to help with this.
- You have 6 months (180 days) from receiving a claim denial to file an internal appeal.
- Find out if you live in one of the US states that also have a special Consumer Assistance Program (CAP) that can help you file an appeal. (You find out online at www.cms.gov/CCIIO/Resources/Consumer-Assistance-Grants/.)
- If you don’t live in a CAP state, get help from the consumer services division of your state insurance department or commission. Check the blue pages of your phone book or contact the National Association of Insurance Commissioners online at http://naic.org/state_web_map.htm, or you can call them at 1-866-470-6242.
- Do not back down when trying to resolve the matter.
- Find out about getting an external review. (See “The external appeals process” below.)
The external appeals process
If your internal appeal is denied, you may be entitled to an independent external review by people outside of your health plan. Note that if your child has employer-sponsored coverage, you may have to file a second internal review before you can file for an external one. Check with your insurance company about the process. For urgent health situations, the timelines are shorter, and you may be able to ask for an external review at the same time you ask for an internal one.
Outside or commercial health plans: Most commercial health plans (those offered by insurance companies) take part in the federal external review process. Find out if your child’s plan does, and if so, call the US Department of Health and Human Services at 1-877-549-8152 for an external review request form, or go to www.cms.gov/CCIIO/Programs-and-Initiatives/Consumer-Support-and-Information/csg-ext-appeals-facts.html to learn more about appeals.
Self-insured health plans: If your plan is self-insured (see the section “ Who regulates insurance plans?”), you can ask your insurer how to start an independent external review. Or you can contact the Employee Benefits Security Administration at the US Department of Labor. You can find contact information in the “ To learn more” section.
If all the internal and external appeals are exhausted, and the claim is still denied, ask the health care provider if the cost of the bill can be reduced. Many providers are willing to reduce bills to get paid faster.
- Covering the costs of cancer treatment
- Private health insurance options
- Types of private health plans for children
- How to manage your child’s health insurance
- Getting answers to insurance-related questions
- Keeping records of your child’s insurance and medical costs
- Handling a health insurance claim denial
- Keeping employer-sponsored health insurance coverage
- Government-funded health plans
- Who regulates insurance plans?
- Options for uninsured children
- What sources are available to help with treatment costs if my child doesn’t have insurance and there’s no public assistance available?
- Financial issues for families: Getting help with living expenses
- To learn more