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? ›

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? ›

The first step in a successful claims resolution approach is to identify not only that a claim has been denied, but also the reason for the denial. When adjudicated claims are returned unpaid, the insurer will indicate the reason on the accompanying explanation of payment.

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 a typical reason for a denied claim? ›

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.

How do we overcome denial? ›

Other practical ways of overcoming denial include:
  1. Thinking about the potential negative consequences that will result if you don't take action.
  2. Listening to people who can challenge your thinking and offer you another perspective.
  3. Opening up to a trusted friend or loved one.
Jul 24, 2022

How to reduce denials in medical billing? ›

How to Help Prevent Medical Billing Claim Denials
  1. Quantify and categorize denials. ...
  2. Create a task force. ...
  3. Improve patient data quality. ...
  4. Avoid incorrect assumptions and determine the true reasons for denials. ...
  5. Develop a denials prevention mindset in all parts of the revenue cycle, ...
  6. Optimize claims management software.

What is your denial management strategy? ›

Denial management is the process of preventing, investigating, analyzing, and resolving denied insurance claims. Physicians lose a significant amount of money every year because of denied healthcare claims that may have been prevented with strong denial management processes.

How would you resolve a denial for no authorization? ›

Submit an appeal.

Contact the plan for details about its appeal process and filing deadlines. If treatment is the issue, focus on why the treatment is the most clinically (and cost) effective. Include copies of relevant documents.

What is the denial management workflow? ›

Denial management in medical billing is the process of identifying and resolving problems that lead to medical claim denials. This encompasses management of existing claim denials and prevention of future denials to optimize providers' cash flow.

How often do insurance companies deny claims? ›

According to the Medical Billing Advocates of America, across the healthcare industry 1 in 7 claims is denied, often for a variety of reasons ranging from technical errors to simple administrative mistakes.

What to do with rejected claims? ›

A provider can resubmit a rejected claim once the errors are corrected because the data never entered the insurance carrier's system (not processed). Some providers and facilities have electronic medical record systems that catch these errors before submission to the insurance carrier.

How can we prevent denials? ›

Best practices to proactively prevent denials
  1. Educate and communicate.
  2. Verify insurance prior to service.
  3. Know your payers.
  4. Document accurately and appropriately.
  5. Leverage technology.
  6. Learn from mistakes.

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.

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.

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