Docs/Guides/Denial Appeals

Denial Appeal Workflow

SourcedMD's denial appeal pipeline. Analyze denial letters, find regulatory violations, and generate fully cited appeal letters backed by the insurer's own policies.

68%
Overturn rate
$47K+
Avg recovered
90s
Time to generate
12+
Denial categories

How it works

1

Upload the denial letter

Paste or upload the denial letter text. The system extracts patient info, claim details, CPT codes, and the stated reason for denial.

2

Automated analysis

ClarityCore cross-references the denial against the insurer's own medical policies, state and federal regulations, CMS guidelines, and clinical evidence databases.

3

Violation identification

The system identifies specific contradictions, regulatory violations, and procedural errors in the denial. Each finding is cited to its exact source.

4

Appeal generation

A fully cited appeal letter is generated with proper legal formatting, regulatory references, and the insurer's own policy language used against them.

5

Review and submit

Review the generated appeal, make any edits, and submit. The system tracks appeal status and can generate follow-up correspondence.

Example: Analyze a denial

POST /mcp/execute
{
  "tool": "denial_appeal_analyze",
  "arguments": {
    "denial_letter": "Patient: Jane Doe, DOB: 03/15/1978\nClaim #: MC-2026-44891\nDenied: Lumbar MRI (CPT 72148)\nReason: Not medically necessary per plan guidelines.\nReview physician: Dr. Smith, MD",
    "include_regulations": true
  }
}

Response

200 OK
{
  "status": "success",
  "result": {
    "denial_type": "medical_necessity",
    "cpt_code": "72148",
    "violations_found": [
      {
        "type": "contradicts_own_policy",
        "detail": "Insurer's own Medical Policy MP-2024-SPINE-003 lists lumbar radiculopathy as meeting medical necessity criteria for MRI",
        "source": "UnitedHealthcare Medical Policy MP-2024-SPINE-003, Section 4.2",
        "confidence": 0.96
      },
      {
        "type": "regulatory_violation",
        "detail": "State regulation requires MRI coverage when conservative treatment has failed for 6+ weeks",
        "source": "State Insurance Code §38.2-3418.1",
        "confidence": 0.91
      }
    ],
    "appeal_strength": "strong",
    "recommended_strategy": "Cite insurer's own medical policy contradicting their denial, combined with state regulatory requirements"
  }
}
Every violation includes its exact source citation, confidence score, and the insurer's own policy reference.

Example: Generate an appeal letter

POST /mcp/execute
{
  "tool": "denial_appeal_generate",
  "arguments": {
    "claim_id": "MC-2026-44891",
    "denial_analysis_id": "analysis_abc123",
    "format": "formal_letter",
    "include_citations": true,
    "urgency": "expedited"
  }
}

The generated appeal letter includes proper legal formatting, all identified violations with citations, the insurer's own policy language, applicable state and federal regulations, and clinical evidence supporting medical necessity.

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