Got a denial from Medicare stating we need to provide an arterial blood gas (ABG) study along with additional documentation proving medical neccessity. We requested all documentation from the physician that we possibly could and resubmitted to Medicare. We then received another denial. They are saying they need the ABG. The physician didn't do an ABG, they only did O2 saturation tests on room air. LCD's state that either test will work for qualifying a patient for O2... I don't get it!
We sent this to appeals and it came back again saying they will not pay without the ABG. We are in Jurisdiction C and have never had to go through this before. What are we to do now?

Any suggestions? Or, should we just write off? The patient is unwilling to pay personally, but needs the O2 for their O2 sat lingered in the mid 80's without O2. Dx: COPD, CAD, and OSA.
Any help is much appreciated!
Christian