Utilization Management

Also called: utilization review, UM

Utilization management is the broad set of techniques, including prior authorization, step therapy, and concurrent and retrospective review, that plans use to decide whether care they consider appropriate will be covered. It is where most denials originate. Understanding which utilization-management tool produced your denial helps you target the right appeal argument.

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Disclaimer: This definition is provided for general educational purposes only and is not legal, medical, or insurance advice. Insurance rules, deadlines, and terminology vary by plan, state, and over time. Always check your own plan documents and confirm current details before acting.