In health insurance, what does "medically necessary" signify?

The term "medically necessary" in health insurance refers to health services that are required to diagnose or treat a medical condition. This includes services that are essential for the health and welfare of the patient, ensuring that they receive appropriate care based on current medical standards. Such services must be seen as effective and necessary by healthcare providers for a patient’s specific health issue.

In the context of health insurance, coverage is often limited to those services that are deemed medically necessary, which means that they are not elective or cosmetic in nature. Treatments that fall under this definition are typically aimed at improving a patient’s health by addressing an illness, injury, or medical condition, rather than being optional or aesthetic enhancements. Insurance policies are designed to limit coverage to these necessary treatments to manage costs and provide appropriate care.