How do internal and external appeals differ in the review process?

• A. Internal appeal is a plan's review; external appeal is a review by an independent entity/state agency.
• B. External appeal is a review by a state agency's staff only.
• C. Internal appeal involves external providers; external appeal involves internal staff.
• D. Internal and external appeals are the same process.

Answer: (A)

The main idea is that there are two levels of review for denials: an internal, plan-based review and an independent external review. The internal process is conducted by the plan itself—its staff and medical directors—who apply the plan’s own policies and criteria to decide whether the original denial was correct. If you still disagree, you can request an external appeal, which is handled by an independent entity outside the plan, often a state agency or a contracted external review organization. This external review uses neutral standards and medical experts, and its decision is typically binding on the insurer.

That’s why the chosen statement is the best fit: it accurately describes internal as the plan’s own review and external as an independent entity or state agency review. The other options don’t reflect who handles the review or the independence of the process.