Billing & ClaimsUpdated Dec 25, 2025

How to Appeal a Denied Claim

A complete step-by-step guide to appealing denied insurance claims for physical therapy services, including templates and timelines.

1

Identify the denial reason

Navigate to Billing > Denied Claims to view all denied claims. Each denial includes the payer's reason code and description. Common denial reasons include: missing prior authorization (CO-197), medical necessity not established (CO-50), duplicate claim (CO-18), and incorrect modifier (CO-4). Understanding the specific reason is critical for crafting an effective appeal.

2

Gather supporting documentation

PRACTIS automatically assembles the documentation needed for your appeal based on the denial reason. For medical necessity denials, this includes the plan of care, functional limitation reports, outcome measures showing progress, and the referring physician's order. For authorization denials, Alex pulls the original auth request and any payer correspondence.

3

Review the AI-drafted appeal letter

Riley generates a customized appeal letter that addresses the specific denial reason, cites relevant clinical guidelines (APTA Clinical Practice Guidelines, Medicare LCD/NCD policies), and includes supporting evidence from the patient's chart. Review the letter, make any edits, and approve for submission.

4

Submit the appeal within the deadline

Most payers require appeals within 30-180 days of the denial date. PRACTIS tracks these deadlines and prioritizes appeals approaching expiration. Submit through the payer's preferred channel — Riley handles electronic submissions, fax transmissions, and portal uploads automatically.

5

Track the appeal outcome

After submission, PRACTIS monitors the appeal status. You'll receive notifications when the payer responds. If the first-level appeal is denied, PRACTIS can escalate to second-level and external review processes. Practices using PRACTIS achieve a 67% appeal success rate, compared to the industry average of 40-50%.

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