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What criteria will be used by the RAC’s in determining the medical necessity of services related to a claim?

The RAC shall consider a service to be reasonable and necessary if the RAC determines that the service is:
  • Safe and effective;
  • Not experimental or investigational (exception: routine costs of qualifying clinical trial services with dates of service on or after September 19, 2000, which meet the requirements of the Clinical Trials NCD, are considered reasonable and necessary); and
  • Appropriate, including the duration and frequency that is considered appropriate for the service, in terms of whether it is:
    • Furnished in accordance with accepted standards of medical practice for the diagnosis or treatment of the patient's condition or to improve the function of a malformed body member;
    • Furnished in a setting appropriate to the patient's medical needs and condition;
    • Ordered and furnished by qualified personnel;
    • One that meets, but does not exceed, the patient's medical need; and
    • At least as beneficial as an existing and available medically appropriate alternative.
Preventive medicine services covered by Medicare (e.g., flu shots, covered screening services provided within frequency limitations) will not be subject to reasonable and necessary criteria for services provided for diagnosis or treatment of an illness or injury.
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