Psychosis denials in California external review

In the California DMHC record, independent physician reviewers decided 32 published external-review cases involving psychosisand overturned the plan’s denial in 81.3%. That is a historical result among cases that reached this program, not a forecast for an individual appeal.

California DMHC decisions
32
2007–2025
Overturned
81.3%
26 denials reversed

Most-fought treatments for psychosis

What insurers denied — and how those fights ended.
TreatmentDecisionsOverturned
Residential Treatment Center12
100%
Typical time to a decision
5 days
Most land between 3 and 20 days
Handled as urgent
62.5%
Expedited when a delay would cause harm

What the reviewers wrote

Excerpts from the independent reviewers’ published findings — the actual reasoning, quoted, not summarised.

Where the denial was overturned

Findings: The physician reviewer found that The patient has requested reimbursement for residential treatment center (RTC) services. The American Academy of Child and Adolescent Psychiatry (AACAP) and American Association for Community Psychiatry (AACP) have unified the Child and Adolescent Level of Care Utilization System (CALOCUS) and the Child and Adolescent Service Intensity Instrument (CASII) into a single instrument, the Child and Adolescent Level of Care/Service Intensity Utilization System (CALOCUS-CASII). This instrument is a standardized tool used to determine the intensity of services needed for children and adolescents, 6-18 years of age, presenting with psychiatric, substance use, medical and/or developmental concerns. Using CALOCUS-CASII, providers score patients on a scale of 1-5 using a six-pronged Dimensional Rating System.
Medical Necessity · 2023 · IMR MN23-38830
Nature of Statutory Criteria/Case Summary: An enrollee has requested reimbursement and authorization and coverage for Residential Treatment Center (RTC) services (equivalent to ASAM 3.1).At issue in this case is whether the requested Residential Treatment Center (RTC) services (equivalent to ASAM 3.1) were, and are, medically necessary as defined in Health and Safety Code section 1374.72(a)(3)(A) to treat the patient’s mental health or substance use disorder.California Health and Safety Code section 1374.72(a)(3)(A) states that “Medically necessary treatment of a mental health or substance use disorder” means a service or product addressing the specific needs of that patient, for the purpose of preventing, diagnosing, or treating an illness, injury, condition, or its symptoms, including minimizing the progression of that illness, injury, condition, or its symptoms, in a manner that is al…
Medical Necessity · 2023 · IMR MN23-38658

Where the denial was upheld

Worth reading too — these show what an appeal has to overcome.
Nature of Statutory Criteria/Case Summary: An enrollee has requested reimbursement for acute inpatient psychiatric treatment for treatment of the enrollee’s behavioral health conditions. Findings: The physician reviewer found that the submitted documentation fails to support the medical necessity of the services at issue. The patient had a somewhat difficult course after his initial admission. Despite his changing polypharmacy regimen, he remained actively psychotic, with intrusive and sometimes aggressive behavior. He lacked either the ability or the desire to attend to hygiene and grooming. He then developed transaminitis, his medications were held, and he cleared up. His medications were changed, and he started Invega Sustenna. He began to show improvement in hygiene, behavior, and psychotic symptoms.
Medical Necessity · 2016 · IMR MN16-23844
Nature of Statutory Criteria/ Case Summary: The enrollee has requested reimbursement for Intensive Outpatient Program (IOP) services. Findings: The physician reviewer found that the enrollee has a history of depression, psychosis, substance use, including cannabis and prescription amphetamines. He was actively abusing marijuana and prescription amphetamines. He transitioned from PHP to an intensive outpatient program (IOP). Notes indicated no current suicidal ideation. He denied a history of ever acting on suicidal ideation. Psychiatry notes indicated improvement in mood, good energy, feels rested, normal speech, no suicidal/homicidal ideation, no auditory verbal hallucinations, started gaining insight into connection between substance use, psychosis and social isolation.
Medical Necessity · 2019 · IMR MN19-31352

Figures and quotations on this page come from 42,749 published decisions in the California DMHC Independent Medical Review dataset. These are California external-review outcomes. Other state and federal programs have different eligibility rules, processes, and current availability; the rates here do not transfer to those programs or predict an individual result. Excerpts are quoted verbatim from the public record and describe this condition generally, not any individual case.

How to use this in your appeal

These outcomes describe eligible cases completed through California DMHC’s Independent Medical Review program. They do not estimate the chance that an internal appeal, an external review in another jurisdiction, or your individual case will succeed. Use the record to identify evidence patterns involving psychosis, then check the rights and deadlines that apply to your plan.

SOURCE: CALIFORNIA DMHC INDEPENDENT MEDICAL REVIEW OUTCOMES (CHHS OPEN DATA) · AGGREGATES + DEIDENTIFIED DECISION EXCERPTS/REFERENCE IDS · METHODOLOGY

Not legal or medical advice. Coverage Rights is a self-help tool that helps you prepare your own appeal. For advice about your specific situation, talk to a licensed attorney or your doctor.

Fighting a denial for psychosis? Use the California record to prepare.

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