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Why medical necessity is so important when it comes to coding for diagnoses or procedures?

Why medical necessity is so important when it comes to coding for diagnoses or procedures?

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Answer: It is must and necessary to diagnose or treat a patient’s medical condition. While submitting claims for payment, the diagnosis codes reported with the service that display the payer that the reason of the service performed. The diagnosis reported can be the determining factor in supporting or not supporting the medical necessity of the procedure. The diagnostic code is mandatory as many payers, including Medicare and Medicaid, have medical coverage policies that defines the procedure and diagnosis codes which are supported for each diagnostic or surgical procedure. If the diagnosis code is not listed in the policy, the payer determines that the procedure is not medically necessary for that condition. So, there is a necessity of these medical codes.

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