"Not Medically Necessary": Inside the Company Helping America's Biggest Health Insurers Deny Coverage for Care

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TLDR

  • EviCore, owned by Cigna, uses a tunable AI algorithm to drive prior authorization denials for 100 million insured Americans on behalf of Aetna, UnitedHealthcare, and others.

Key Takeaways

  • EviCore’s “dial” algorithm scores prior auth requests; lowering the auto-approve threshold pushes more cases to human review, directly increasing denial rates.
  • Some contracts are “risk contracts” where EviCore pockets savings when it keeps procedure costs below a baseline, aligning profit directly with denials.
  • EviCore markets a 3-to-1 ROI to insurers and internally tracked a 15% increase in denials as a sales metric.
  • Arkansas-mandated disclosure shows EviCore denied ~20% of requests since 2021, versus ~7% for Medicare Advantage plans in 2022.
  • Medical guidelines are also adjusted by client to hit savings targets, with executives directing closer scrutiny when a client “isn’t showing savings.”

Hacker News Comment Review

  • Physicians report that “peer-to-peer” denial reviews often involve non-physicians as a first line, undermining the stated requirement that only doctors issue final denials.
  • No substantive disagreement or technical counterpoints in current discussion; commentary is early and thin.

Notable Comments

  • @vanc_cefepime: practicing physician says peer-to-peer review contacts are frequently non-physicians, contradicting EviCore’s claim that only doctors issue denials.

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