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The rules say that plans must pay for a medical service or item if regular Medicare would pay for it in this case. 
You can find this rule at 42 Code of Federal Regulations (CFR) Section 422.101. 
 
The rules say that psychological and neuropsychological tests are designed to determine the functional 
consequences of known or suspected brain dysfunction through testing of the neuro-cognitive domains 
responsible for language, perception, memory, learning, problem solving, adaptation, and constructional praxis. 
 
Neuropsychological Testing: 
These tests are requested for patients with a history of psychological, neurologic or medical disorders known to 
impact cognitive or neurobehavioral functioning. 
 
Neuropsychological testing is considered medically necessary for the following indications: 
 
    When there are mild or questionable deficits on standard mental status testing or clinical interview, and 
neuropsychological testing is needed to establish the presence of abnormalities or distinguish them from 
changes that may occur with normal aging, or the expected progression of other disease processes; or 
    When neuropsychological data can be combined with clinical, laboratory, and neuroimaging data to assist in 
establishing a clinical diagnosis in neurological or systemic conditions known to affect CNS functioning; or 
    When there is a need to quantify cognitive or behavioral deficits related to CNS impairment, especially when 
the information will be useful in determining a prognosis or informing treatment planning by determining the 
rate of disease progression; or 
    When there is a need for a pre-surgical or treatment-related cognitive testing to determine whether one might 
safely proceed with a medical or surgical procedure that may affect brain function (e.g., deep brain stimulation, 
resection of brain tumors or arteriovenous malformations, epilepsy surgery, stem cell transplant) or 
significantly alter a patient's functional status; or 
    When there is a need to test for the potential impact of adverse effects of therapeutic substances that may 
cause cognitive impairment (e.g., radiation, chemotherapy, antiepileptic medications), especially when this 
information is utilized to determine treatment planning; or 
    When there is a need to monitor progression, recovery, and response to changing treatments, in patients with 
CNS disorders, in order to establish the most effective plan of care; or     When there is a need for objective measurement of the patient's subjective complaints about memory, 
attention, or other cognitive dysfunction, which serves to determine treatment by differentiating psychogenic 
from neurogenic syndromes (e.g., dementia vs. depression); or 
    When there is a need to establish a treatment plan by determining functional abilities/impairments in 
individuals with known or suspected CNS disorders; or 
    When there is a need to determine whether a patient can comprehend and participate effectively in complex 
treatment regimens (e.g., surgeries to modify facial appearance, hearing, or tongue debulking in craniofacial or 
Down syndrome patients; transplant or bariatric surgeries in patients with diminished capacity), and to 
determine functional capacity for health care decision-making, work, independent living, managing financial 
affairs, etc.; or 
    When there is a need to design, administer, and/or monitor outcomes of cognitive rehabilitation procedures, 
such as compensatory memory training for brain-injured patients; or 
    When there is a need to establish treatment planning through identification and assessment of the 
neurocognitive sequelae of systemic disease (e.g., hepatic encephalopathy; anoxic/hypoxic injury associated 
with cardiac procedures); or 
    Assessment of neurocognitive functions for the formulation of rehabilitation and/or management strategies 
among individuals with neuropsychiatric disorders; or 
    When there is a need to diagnose cognitive or functional deficits in children and adolescents based on an 
inability to develop expected knowledge, skills or abilities as required to adapt to new or changing cognitive, 
social, emotional, or physical demands. 
 
Components of Neuropsychological Testing 
    Test Selection 
    Information from medical records, clinical interviews, and behavioral observations is integrated to guide the 
selection of specific neuropsychological tests. The selection of tests is a strategic process that varies as a 
function of patient characteristics (level of education, premorbid level of functioning, sensory abilities, physical 
limitations, fatigue level, age, and ethnicity) and the goals of the testing (establishing a diagnosis, measuring 
treatment effects, etc.). 
    Test Administration and Scoring  
    Tests are administered either directly by a Medicare provider with an appropriate state license or by a trained 
technician. A technician who administers the neuropsychological test must be directly supervised by the 
provider. 
 
    Neuropsychological tests include direct question-and-answer, object manipulation, inspection and responses 
to pictures or patterns, paper-and-pencil written or multiple choice tests, which measure functional impairment 
and abilities in: 
            a. General intellect 
            b. Reasoning, sequencing, problem-solving, and executive function 
            c. Attention and concentration 
            d. Learning and memory 
            e. Language and communication 
            f. Visual-spatial cognition and visual-motor praxis 
            g. Motor and sensory function 
            h. Mood, conduct, personality, quality of life 
            i. Adaptive behavior (Activities of Daily Living) 
            j. Social-emotional awareness and responsivity 
            k. Psychopathology (e.g., psychotic thinking or somatization) 
            l. Motivation and effort (e.g., symptom validity testing) 
 
You can find these rules in the Local Coverage Determination (LCD) Psychological and Neuropsychological 
Testing L34646. 
 
If you want to read these Medicare rules, you can go to this website www.medicareappeal.com. 
 
The Plan contract says that the Plan covers items and services in accordance with Medicare rules.