How to Resolve a Claim Denial (2024)

How to Resolve a Claim Denial (1)

As a mental health practice owner, it can be frustrating and disheartening to have insurance claims denied. Claim denials are no reason to panic; they happen to everyone! These are steps you can take to resolve denied claims and ensure that your patients receive the care they need.

Review the reason for the denial

The first step in resolving a denied insurance claim is to understand why it was denied. Carefully review the denial notice you received from the insurance company to determine the reason for the denial. This may include issues with the diagnosis, treatment plan, or documentation provided. If you have a Practice Solutions biller, you can consult with them on claim denials to utilize their years of experience in managing claim denials.

If you are experiencing denials due to timely filing, non-covered service, or being out of network, read our blog post 3 Standard Denial Reasons and How to Solve Them next.

Gather supporting documentation

Once you have identified the reason for the denial, gather any supporting documentation that may help to overturn the decision. This could include additional medical records, test results, or documentation of the patient's progress.

Appeal the denial

If you believe that the insurance company's decision was incorrect, you can file an appeal. This may involve submitting a written request to the insurance company explaining why you believe the claim should be approved. You may also be able to present your case to an independent review board. When utilizing Practice Solutions’ billing services, the appeal process is something that your biller will manage for you. Your biller will need your assistance with supporting documentation and understanding the circ*mstance to build a case, but they will be sure to follow the proper filing method for each insurance company to give the best chance of a successful appeal.

Negotiate with the insurance company

If the appeal process is unsuccessful, you may be able to negotiate with the insurance company to reach a resolution. This could involve offering to reduce the charges for the treatment in exchange for the insurance company covering a portion of the costs.

By following these steps, you can take action to resolve denied insurance claims and ensure that your patients receive the care they need. It may take some time and effort, but it is worth it to ensure that your patients receive the treatment they deserve. If you would like to take preventive action to avoid future denials, check out our blog post 3 Tips to Reduce Claim Denials.

If you are experiencing denials and would like help in resolving the issue, contact Practice Solutions today to learn more about our billing services and how they might help to get your practice back on track!

How to Resolve a Claim Denial (2024)

FAQs

What are the possible solutions to a denied claim? ›

Appeal the denial

If you believe that the insurance company's decision was incorrect, you can file an appeal. This may involve submitting a written request to the insurance company explaining why you believe the claim should be approved. You may also be able to present your case to an independent review board.

How do you respond to a denied claim? ›

Steps to Appeal a Health Insurance Claim Denial
  1. Step 1: Find Out Why Your Claim Was Denied. ...
  2. Step 2: Call Your Insurance Provider. ...
  3. Step 3: Call Your Doctor's Office. ...
  4. Step 4: Collect the Right Paperwork. ...
  5. Step 5: Submit an Internal Appeal. ...
  6. Step 6: Wait For An Answer. ...
  7. Step 7: Submit an External Review.

What is the first step in resolving a denial? ›

Understanding the reason for denial is the first step towards resolving it. Correct Errors: Once the reason for denial is understood, the necessary corrections should be made to the claim.

What are the three most common mistakes on a claim that will cause denials? ›

Here, we discuss the first five most common medical coding and billing mistakes that cause claim denials so you can avoid them in your business:
  • Claim is not specific enough. ...
  • Claim is missing information. ...
  • Claim not filed on time (aka: Timely Filing)

What to do after a claim is denied? ›

File an appeal

Filing a formal appeal triggers a review of your denied claim. Include with your appeal as much evidence and documentation as you can to support the position that your damages should be covered.

What is the most common reason for claims being denied? ›

The claim has missing or incorrect information.

Whether by accident or intentionally, medical billing and coding errors are common reasons that claims are rejected or denied. Information may be incorrect, incomplete or missing.

What do you say when you get denied? ›

How to respond to a job rejection letter
  • Thank the hiring manager for letting you know their decision.
  • Express your gratitude for their time and consideration. You can directly mention contact you've had with them, like a phone or in-person interview .
  • Tell them you appreciate the opportunity to learn about the company.
Apr 8, 2024

How do I write an appeal for denial? ›

How to write an appeal letter to insurance company appeals departments
  1. Step 1: Gather Relevant Information. ...
  2. Step 2: Organize Your Information. ...
  3. Step 3: Write a Polite and Professional Letter. ...
  4. Step 4: Include Supporting Documentation. ...
  5. Step 5: Explain the Error or Omission. ...
  6. Step 6: Request a Review. ...
  7. Step 7: Conclude the Letter.
Feb 15, 2024

How do you respond to a denied request? ›

How to respond to a rejection email
  1. Address the recipient by name. At the start of your response letter, address the recipient by name. ...
  2. Thank them for their time. ...
  3. Communicate your disappointment. ...
  4. Express your ongoing interest. ...
  5. Request feedback. ...
  6. Close the letter politely. ...
  7. Proofread your letter.
May 3, 2023

What is the first step of denial? ›

Denial. In the first stage of the grieving process, denial helps us minimize the overwhelming pain of loss. As we process the reality of our loss, we are also trying to survive emotional pain.

How would you resolve a denial for no authorization? ›

If the denial reason was “no pre-authorization,” ask the plan to back-date one. If they will, resubmit the claim with a note including the new auth number. If they won't, appeal.

What is the antidote for denial? ›

Acceptance: Acceptance, along with understanding the causes of personality disorders, is the first antidote for denial. In order to stop denial, we must learn to develop a peaceful acceptance of the truth. There is a need to acknowledge the truth about what is going on in addiction.

What is the protocol to have a denied claim resolved? ›

Steps to Appeal a Benefit Claim Denial
  1. Ask the insurer to explain the reason for the denial in writing.
  2. Review your policy to see if you should be covered.
  3. Ask the medical provider to help you get answers from the insurer.

What are the two types of claim denials? ›

Understanding the distinction between substantive and technical denials is essential. While substantive denials offer a pathway for appeal, technical denials are definitive, as the premiums paid by the insured individual for that health plan reflect the non-coverage of those items.

What are the three possible outcomes of a claim? ›

Once a claim is in the payer's hands, there are three possible outcomes: the claim is accepted, rejected, or denied.

What to do with rejected claims? ›

If your resubmitted claim is denied and you believe the denial was improper, you may appeal the decision according to the carrier's guidelines. Make sure you know exactly what information you need to submit with your appeal. Keep in mind that appeal procedures may vary by insurance company and state law.

What is the best way to prevent delinquent and denied claims? ›

Which is the best way to prevent delinquent claims? Verify health plan identification information on all patients .

Can you dispute a denied claim? ›

You have the right to appeal your health plan's denial of benefits for covered services that you and your health care provider (doctor, hospital, etc.) believe are medically necessary. By filing an internal appeal, you are requesting your health plan to review the denial decision in a fair and complete way.

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