Medical Office Assistant · Medical Economics, Billing, and Coding

Medical Necessity in Coding and Billing

On this page 3 sections
  1. Quick check
  2. Study tools
  3. Sources & references

Quick check

5 questions here, of 85 in this lesson’s practice set. Answers stay hidden until you check.

Question 1 of 5foundational

In billing and coding, what does the term "medical necessity" generally mean?

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Question 2 of 5foundational

Which phrase best captures the Medicare/CMS standard used to decide whether a service is medically necessary?

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Question 3 of 5foundational

A service provided primarily for the convenience of the patient or the provider is generally...

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Question 4 of 5foundational

Which of the following is a key element of medical necessity?

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Question 5 of 5foundational

Medical necessity generally requires services to be furnished at the most appropriate level of care, which means...

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Study tools & related lessonsYou’ll learn to · Related

You’ll learn to

  • Define medical necessity and explain the elements of services that are reasonable and necessary for diagnosis or treatment.
  • Relate clinical documentation, including diagnosis-to-procedure linkage, to establishing medical necessity.
  • Recognize coverage determination concepts, including National and Local Coverage Determinations, prior authorization, and Advance Beneficiary Notices.
  • Apply scope-of-practice boundaries by gathering and routing information and escalating medical necessity determinations to clinicians and billing professionals.
  • Identify documentation and coding practices that prevent medical necessity denials and avoid fraud and abuse.

Sources & references

  1. Centers for Medicare & Medicaid Services — CMS.gov
  2. American Health Information Management Association — AHIMA - Health Information and Coding
  3. AAPC — Medical Coding and Billing

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