1. Health care services covered by insurance that are necessary to preserve and maintain the health of a member of a managed care plan. The medical service provided must be necessary, appropriate according to current standards of medical practice, provided in the most appropriate setting, and performed at the proper level of service. 2. Cal. Wel. & Inst. Code 14059.5 defines medical necessity when it is reasonable and necessary to protect life, to prevent significant illness or significant disability, or to alleviate severe pain. See also medical necessity and medically (or psychologically) necessary services .

That portion of a patient’s inpatient hospital stay during an episode of illness or injury that is called excessive when care may be given in a less expensive or more efficient setting. It may be considered too long a stay when considering current standards of good medical practice.

Persons in need of financial assistance and/or whose income and resources will not allow them to pay for the costs of medical care. Also called medically indigent in some states. See also charity allowance and charity care .

County, group of counties, or neighborhood that is considered to have three shortage area categories: primary care, dental care, and mental health care. Designation of a particular service area is based on the percentage of population below poverty level, percentage of population age 65 and older, infant mortality rate, and ratio of primary care physicians per 1000 population.

Medicare frequency edits that limit the number of units of service (UOS) that a provider may bill for certain HCPCS/CPT codes on an insurance claim for the same beneficiary on the same date of service. MUEs were developed to catch errors and prevent inappropriate payments and are applied to each line of the claim. Thus the entire claim is not denied, and the provider only appeals the denied codes.