The Insurance Company will deny the claim as CO 50 – These are non-covered services because this is not deemed medical necessity by the payer, whenever the procedure code is not compatible with diagnosis code billed based on the LCD/NCD-Local Coverage determination/National Coverage determination guidelines.

Solution:

The denial CO 50 – These are non-covered services because this is not deemed medical necessity by the payer states that the claim submitted is not appear to be medically necessary to the patient.

• First we need to review whether submitted diagnosis code is payable and billed as per LCD/NCD guidelines.
• If billed diagnosis code is not payable, then we need to resubmit the claim with correct diagnosis code based on LCD/NCD guidelines and resubmit a claim.
• If the diagnosis code submitted based on LCD and it supports the documentation then you have rights to appeal the claim along with supporting documentation.

Insurance company normally covers the services which deemed medically necessary or else claim gets denied as CO 50 – These are non-covered services because this is not deemed a medical necessity by the payer.

Some of the reasons why insurance company denies the claim as CO 50 – These are non-covered services because this is not deemed a medical necessity by the payer, but may not be limited to the following:

• Times where your hospital service exceeds the insurance approved stay length.
• Physical therapy treatment that exceeds Insurance usage limit.
• Suppose Hospital/provider administered treatment that could have been delivered in a cheaper cost setting.
• Prescription of drugs used for cosmetic services.

When you get the above denial it’s better to call the insurance claims department with the following questions for more information in order to resolve the claim.