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Psychological Evaluation denials: what the review data shows

Independent reviewers have decided 21 published cases where an insurer denied Psychological Evaluation — and they overturned the insurer 33.3% of the time. A denial for Psychological Evaluation is a starting position, not a final answer.

Published decisions
21
2001–2026
Overturned
33.3%
7 denials reversed

Conditions behind psychological evaluation denials

What insurers denied — and how those fights ended.
CategoryDecisionsOverturned
ADHD8
25%
Autistic Disorder5
0%
Typical time to a decision
21 days
Most land between 14 and 21 days
Handled as urgent
9.5%
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

Nature of Statutory Criteria/Case Summary: The patient’s parent has requested authorization and coverage for an additional 10 units (for a total of 30 units) of neuropsychological testing services. In this case, the patient has medically and surgically refractory epilepsy, and is status post a partial resection of the right frontal lobe, with subsequent implantation of RNS. He continues to have numerous seizures daily, despite the stimulator and multiple anticonvulsant medications. There is concern that he may have reading reflexive epilepsy. He has an SCN1A mutation of uncertain significance. Meisler and colleagues note that mutations of SCN1A genes are responsible for a significant burden of neurological disease. SCN1A mutations have been associated with cognitive decline.
Medical Necessity · 2022 · IMR MN22-36886
Nature of Statutory Criteria/Case Summary: The patient’s parent has requested reimbursement for an additional 12.5 hours of neuropsychological testing (5 units CPT 96133 and 15 units of CPT 96139 for 27 total hours/41 units).Findings: The physician reviewer found that Health Plan approved 14.5 out of the 27 hours of neuropsychological testing requested. Given that the diagnosis of attention deficit hyperactivity disorder (ADHD) is most often a clinical diagnosis and does not require neuropsychological testing to confirm, Wechsler Individual Achievement Test, 5th Edition (WIAT-5) and Conners Continuous Performance Test, 3rd Edition (CPT-3) testing were not medically necessary.
Medical Necessity · 2022 · IMR MN22-36835

Where the denial was upheld

Worth reading too — these show what an appeal has to overcome.
Findings: The physician reviewer found that the patient has requested authorization and coverage for an additional 42 hours of neuropsychological testing services. The American Psychological Association (APA) has established guidelines for the testing and billing of psychological and neurological assessments that include descriptions of the various CPT codes utilized during testing and how they are to be used. In this case, the provider has requested the following codes/units: six units of CPT 96130, 30 units of CPT 96131, five units of CPT 96136, and 25 units of CPT 96137. There are several issues with the units associated with these codes.
Medical Necessity · 2024 · IMR MN24-42628
Findings: The physician reviewer found that the patient requested authorization and coverage for an additional two (2) units of psychological testing evaluation and two (2) units of administration/scoring.The submitted documentation does not support the medical necessity of the services at issue. In this case, the provider requested 12 hours of testing and interpretation/scoring to complete 16 assessments to rule out a Post Traumatic Stress Disorder (PTSD) diagnosis. These assessments included several attention and autism-specific tests, but nothing specific to evaluating PTSD. It is unclear what the provider is assessing for and how they plan to rule out PTSD with the assessments selected.
Medical Necessity · 2024 · IMR MN24-42759

Figures and quotations on this page come from 42,749 published decisions in the California DMHC Independent Medical Review dataset. These are California outcomes — every state runs an equivalent external review, but the rates here are California’s. Excerpts are quoted verbatim from the public record and describe this treatment generally, not any individual case.

How to use this in your appeal

These are outcomes from California’s external review program — an independent physician panel that binds the insurer. Every state has an equivalent process, and internal appeals succeed even more often. Cite the outcome record for Psychological Evaluationwhen you appeal: reviewers routinely find that denials like yours didn’t hold up.

SOURCE: CALIFORNIA DMHC INDEPENDENT MEDICAL REVIEW OUTCOMES (CHHS OPEN DATA) · DERIVED AGGREGATE STATISTICS ONLY · 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.

Denied Psychological Evaluation? 33.3% got it reversed.

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