Medical Necessity Claim Denial External Review - Overview
Wyoming external review law for disability insurance claim denials will be effective for all covered plans issued or renewed on or after July 1, 2010-- Wyoming Statute, Title 26, Chapter 40, Section 201.
External review is only available for health claims denied for “medical necessity." A covered person must first exhaust the insurer’s internal final appeal process as described in the health insurance contract. After the insurer’s final denial, the covered person or assigned representative may then submit a request to the health insurer for an external review. The external review will be performed by an Independent Review Organization (IRO) that is separate from the insurer and is free of charge for the covered person.
An Independent Review Organization licensed with the Wyoming Department of Insurance will provide external review of denied health claims. The IROs are required to be registered with the Department. Forms and application information are available see links below.
Insurance companies who are authorized to sell disability insurance in the state will be required to provide external review disclosure to their covered persons at the time of the final denial of the claim. Chapter 63 of the Wyoming Insurance Department Regulations describes the full external review process. Language explaining the external review process must be included in the insurance contract. Consumers covered under disability insurance may request an external review of their denied claim if the insurance company based the denial on “medical necessity.”
External Review for Health Claim Denials for Consumers
Your right to an independent external review: Starting July 1, 2010, Wyoming consumers have the right to a review of health claim denial, if the health carrier denied the service, procedure, or supply as "Not Medically Necessary."
You must first exhaust all levels of internal appeals or grievances with your health carrier before you can apply for an external review. No later than 60 days from the date of the health carrier’s final denial and if you have exhausted all levels of appeals, you may submit a written request for an external review to your insurance carrier. You may use Wyoming’s External Review Request Form or the form the company supplies.
If your request qualifies, your insurer will assign your request to an Independent Review Organization (IRO) and notify our department. The IRO will review your medical records and other relevant material received from your health carrier to determine if the health carrier made the correct decision. The IRO’s licensed with the Department of Insurance are independent from the health carriers. Your health carrier will pay the cost of the review. The IRO’s decision is binding on the health carrier.
Registered Independent Review Organizations (IRO)
All disability carriers are subject to Wyoming Statute, Title 26, Chapter 40, Section 201. Wyoming Statute §26-5-103 defines disability insurance.
Pursuant to Wyoming Regulation Chapter 63, the list of registered Independent Review Organizations (IRO) that can be used in this process is listed below. The next IRO to be used is in bold print. Please select the IRO in bold print and notify Peter Greff of the Wyoming Insurance Department at (307) 777-2448 or by email on our contact us page and note the selection so that the rotation process may continue.
If you are a company that would like to be an Independent Review Organization, please fill out the application at the following link. Application for Registration as an Independent Review Organization
Wyoming Disability Insurance External Review Law
Pursuant to Wyoming Statute §26-40-201 a disability policy that provides settlement of claim for a medical service, procedure, or supply shall:
A statement describing a procedure for having the claim denial reviewed by the insurer, including all applicable time limits, requirements and a process for having an expedited review initiated as expeditiously as the claimant’s medical condition or the circumstances require, and in any event within seventy-two (72) hours.
If you would like to review the applicable statute, click on the following link: Wyoming Medical Necessity Statute, Chapter 40, of Wyoming Insurance Code Title 26
If you would like to review the applicable regulation, click on the following link: Wyoming Insurance Regulation, Chapter 63, Medical Necessity Review Rights