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OPM Should Promote Medical Necessity Programs for Federal Employees' Health Insurance

HRD-80-79 Published: Jul 29, 1980. Publicly Released: Aug 08, 1980.
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Highlights

Medical necessity programs were developed to help contain health care costs and promote good health care. They can reduce the incidence of, and payment for, health care procedures not found to be medically necessary or consistent with generally acceptable medical practice. Federal Employees' Health Benefits Program plans have varied greatly in their use of medical necessity programs, but data from plans using the programs show that benefits have been achieved and should increase. Savings are also being achieved because of education and publicity. The Office of Personnel Management (OPM) program manager for employee organization plans has asked the plans to review claims to determine that they represented medically necessary services. Representatives have agreed to include a list of unnecessary surgical procedures in their claim processing systems.

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Employee medical benefitsFederal employeesHealth care costsHealth care planningHealth insurance cost controlMedical expense claimsMedical feesHealth insurancePhysiciansMedicare