.
As someone who worked in an in-patient SUD corporately-owned private treatment center, it was fairly common for insurance companies to deny payment shortly after agreeing to cover a stay. It was a 30-day all-gender/sex drug and alcohol treatment residential facility and insurance companies would not actually pay for 30 days of treatment up front. The given justification (which is fair) is that a client may not stay for all 30 days (leave AMA, multiple prior treatment episodes meaning client has enough experience/understanding to need less than 30 days, etc) so a mechanism called "reauthorization" was utilized, which I'm sure is common in other forms of treatment.
Essentially, a client would admit and insurance would agree to cover anywhere from 1-7 days (I saw a handful that were as high as 14 days, we'll say 7 for the example), a case manager at the client's insurance company (call them Insurance X) would review the clinical notes written so far by the case managers and therapists at the treatment center and based on those notes, along with whatever else Insurance X had access to, they would decide whether or not to cover additional days. These reauthorization "windows" as we called them could range from the given 1-7 days (again rare handful at 14) and would happen again and again until the client discharged from residential treatment; if they continued on to an Intensive Outpatient Program or other such treatment, the process would continue there.
Makes sense, right? However, there are some key flaws: Insurance X could provide a reason to treatment staff for not covering treatment stating "not deemed clinically necessary" and we could appeal their decision to their own internal panel of undisclosed psychiatrists/counselors/doctors who would overturn the decision or again say "not deemed clinically necessary". They had no obligation to document their decision-making process nor highlight what aspects they deemed disqualified a client for continued clinical necessity, meaning a client's stay in a drug and alcohol treatment facility they entered voluntarily to attempt to begin recovering from the medically-recognized disease of addiction could be cut short at any time. All days up to that point are covered, but at EOB on the day of that decision, nothing more will be covered. Clients coming in from out-of-state, who did not have immediate access to transportation, and many who did not have a home or safe environment to go back to (many clients were also survivors of sex trafficking, domestic violence, and/or came from dangerous environments they could not return to) would have to agree to pay immediately or via a payment plan (or get a scholarship if funds were available) for ANY DAYS AFTER THAT. All-caps not because it is not obvious, but because at that particular facility, out-of-pocket rate was $900 per day so if this call happened on a Friday (as many oddly did) staying through the weekend (including Monday bc one is charged for where they BEGAN the day not ENDED) is immediately $2700 on top of whatever they put down coming into treatment.
"They can do private pay, right?" Yes they could, at an exorbitant mark-up similar to John Oliver's expose (read it in French) on billing in the hospital industry where providers mark-up cost of care to $X.00 when they only want/need 20-40% of $X.00 because Insurance X commonly haggles prices down and refuses to pay the full amount. "What about financial assistance such as payment plans and scholarships?" There are amazing people working their fucking asses off in the Finance and Utilization Review departments of treatment centers fighting against corporate leadership to get these approved and in a lot of cases, they are able to work out an arrangement or pay partial even full cost for some amount of days in treatment for a client via a "scholarship". However, I saw my fair share of clients prematurely discharged against all treatment staff's clinical recommendation (which is tied to our licenses) as the "scholarship limit" had been reached for that month or quarter.
Seems hard but realistic, can't pay for everyone. HOWEVER, people admitting into residential drug and alcohol treatment are not always in a right state of mind (i.e. drunk, high, withdrawing, etc.) and are signing financially binding agreements with the implicit understanding they will receive, at a minimum, 28 days of residential treatment. Almost always, the fact that this is a hoped-for 28 days is not disclosed at the time of admittance in a way the client understands or can be held to a standard for understanding. In addition to this grey area of ethics, another factor to consider is that many people seeking treatment do not have strong financial resources as addiction tends to wreck havoc on an individual's fiscal arena. I personally saw family members take out 2nd mortgages, use college funds, sell property, and enter into debt in order to get a loved one into treatment and let them stay for a 28-to-30 day period.
Lets put the pieces together: Client A admits to Treatment Center M with Insurance X believing they will receive 30-days of treatment and is told on a Friday their insurance is cut off and a discharge plan (which to be fair is created within the first 7 days of treatment so in some cases enough was lined up for where it wasn't a disaster) has to be implemented as soon as possible to save the client from accruing debt at $900 per day. A tough situation, lets make it worse (as per some client's cases I saw): CPS has ordered 30 days of treatment in order to retain any custody and/or visitation of children, court has ordered 30 days of treatment or will consider it a revocation of parole/probation, company EAP and HR stated 30 days of treatment or termination. Are all of these situations workable? Yes, but once they discharge, treatment center case managers cannot work with them on those issues ethically or legally. Ideally, one contacts as many of those extenuating parties as possible prior to the discharge in order to explain and try to help, but I'd like to see anyone here get CPS/Courts/Company HR on the line after 3pm any weekday much less a Friday. Many times, clients were forced to discharge early and try to handle all these factors on their own and by their own word it was from insurance rather than being kicked out for behavior (documentation could be provided but due to ROIs and HIPPA you'd have to give any documents to client and remember Insurance X does it via phone and does not given a written-out reason) or remain in treatment and hope for scholarship or take on debt and/or spend even more resources on a payment plan.
FINAL KICKER
Max Census at Treatment Center M: 55
Average # of Therapists: 6
Average # of Case Managers: 5
Average Time Spent on Intake (w/o BPS): 1 hour
Average Time Spent on Intake (w/ BPS): 2-2.5 hours
Each client has to meet with their at least therapist once per week and their case manager at least once per week. Therapists/Case Managers also facilitated group sessions, which to be billable to Insurance X was a minimum of 3 50-minute groups per day. Individual therapy sessions were supposed to be a minimum of 50 minutes, case management sessions to be a minimum of 30 minutes.
CONCLUSION
Just want people to be informed of reauthorizations and what that looks like behind-the-scenes!