Denial code 197 means that the precertification, authorization, notification, or pre-treatment requirement was not fulfilled or was absent.
Thorough documentation based on a respected clinical source is the best way to obtain preauthorization or appeal a denial. In addition to government sources such as AHRQ, it may be worth asking your most frequent payers what guidelines they use. Clearly document any deviation from evidence-based guidelines.
A denied prior auth request can occur when a provider's office submits a wrong billing code, misspells a name or makes another clerical error. Requests can also be denied if the prior auth request lacks sufficient information about why the medication or treatment is needed.
Best Practices for Avoiding Prior Authorization Denials Double-check the billing codes. Use the correct spelling for all names. Fully detail why you've recommended the treatment. Outline any treatments the patient has already tried and failed. Back up your claims with evidence-based clinical guidelines.
Once you have a reason for the denial, it's time to partner with your physician's office. Give them the reason for the denial and see if there is any additional information they can provide to support the prior authorization request. Get copies of your consult notes, test results and any additional information needed.
If your resubmitted claim is denied and you believe the denial was improper, you may appeal the decision ing 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.
They would need to first contact the insurance company and ask why the claim was denied. If the insurance company indicates a billing error or missing information, patients can work with their physician to review the paperwork and fix any errors that caused the denial.
You may be able to appeal to your insurance company multiple times based on the evidence you provide. If the outcome is not satisfactory, you can consider contacting a public adjuster to advocate on your behalf or file a complaint with your state's insurance department to act as an intermediary for the dispute.
Be persistent Your appeal should include an explanation of your reconsideration request, along with any necessary supporting documentation, such as a copy of the claim in question and copies of earlier communication to the company about the matter.