PLAYBOOK · HEALTHCARE

Build an on-prem health insurance rule checker with VDF AI.

Health insurers, third-party administrators, and integrated payer-provider networks operate on dense, fast-changing rule sets: medical necessity, plan benefits, prior authorization, exclusion clauses, fraud and waste indicators. This playbook shows how to construct a regulator-grade rule checker on VDF AI — using a Custom API, intent templates, and carefully crafted system prompts — that runs entirely inside your network, with every decision traceable.

Most payers already own the assets: a deterministic rule engine, plan booklets, a member master, claims history. What they lack is a way to compose those assets into a transparent, auditable adjudication network without shipping PHI to a public API. VDF AI is the orchestration layer that wraps your rule engine as a tool, grounds reasoning in your indexed policies, and ships a regulator-ready evidence pack with every decision.

Custom API Intent Templates System Prompts Private RAG SEEMR
Healthcare solutions
VDF Data Overview powering the rule checker
The problem

Rule books grow faster than IT can ship

Claim adjudication, medical necessity, and plan benefit rules change every quarter. Hand-coding them into legacy decisioning systems is slow, error-prone, and opaque to regulators. SaaS AI vendors can't see protected health information, and shipping PHI to a public API is rarely an option.

  • Hundreds of policy variants per insurer
  • Frequent CMS, EU, or local regulator updates
  • Audit trails required for every adjudication
  • Strict residency and PHI handling rules
The VDF AI approach

A composable, on-prem rule-checking network

You bring your rule set, your plan documents, and your claims schema. VDF AI gives you a Custom API, an intent template, agent definitions, and a Network that ties them together — all running on your hardware, governed by SEEMR.

  • Custom HTTP tool to call your internal rule engine
  • Intent templates for adjudication, exclusion, and prior auth
  • System prompts tuned per plan family
  • Full traceability via Live Execution Monitoring
WHY THIS MATTERS NOW

Adjudication is becoming a regulated AI workload

Payer organizations are simultaneously being pushed in two directions. Regulators in the United States, the EU, and the Gulf are demanding faster turnaround on prior authorization and clearer evidence trails on denials. At the same time, AI use in healthcare is rapidly moving from "experimental" to "regulated activity" — covered by the EU AI Act, by NAIC model AI bulletins, and by emerging state-level disclosure laws.

That combination makes a black-box adjudication assistant a non-starter. Every clinical, plan, and exclusion decision needs to point to a specific clause, a specific rule, and a model whose behavior is governed. The VDF AI rule checker is built to meet that bar: intent templates decompose a claim, Custom HTTP tools call your deterministic engine, Private RAG grounds reasoning in plan booklets and CMS guidance, and SEEMR routes each sub-intent to the right model.

"Show me the clause" is the question every reviewer asks. Every decision the network produces is structured to answer it before it is asked.
~30%
of denials are appealed in many U.S. plans — most because the rationale was unclear, not because the decision was wrong.
Quarterly
cadence at which most plan documents and CMS LCD/NCD policies materially change.
100%
of decisions need a cited clause and a model-routing record under emerging AI-disclosure regimes.
WHAT YOU NEED TO START

Prerequisites for a two-week pilot

Data
  • Sample of 200–500 historical claims with adjudication outcomes
  • Plan booklets and schedules of benefits (PDF or HTML)
  • Active LCD / NCD or local regulator guidance set
  • Member master access (read-only) for eligibility
Infrastructure
  • VDF AI on-prem deployment (Docker or Kubernetes)
  • At least one registered model (cloud or local)
  • Network access to your rule engine endpoint
  • pgvector-capable Postgres instance (ships with VDF AI)
People
  • One clinical SME for system-prompt review
  • One claims operations lead for golden-set selection
  • One compliance reviewer for audit-log sign-off
  • Optional: a fraud analyst for SAR signal cases
REFERENCE ARCHITECTURE

How the rule checker is wired

Claims & Policy Sources
HL7, FHIR, PDFs, SQL
VDF Data
EDA · Feature Lists · pgvector
Private RAG
Plan benefits · Exclusions · CMS guidance
Custom HTTP Tool
POST /rules/check
Rule Checker Agent
System prompt + tool calls
Adjudication Network
Intent template · SEEMR routing
Adjudication Decision
Audit Log & Live Monitoring
Human Reviewer (optional)
PLAYBOOK · STEP BY STEP

From rule book to governed adjudication network

1

Register your rule engine as a Custom HTTP Tool

From AgentsHub → Tools, click Add HTTP Tool. Point it at your internal endpoint (for example POST /rules/check) and declare its JSON schema so the agent can call it safely. Agents do not learn to parse undocumented APIs — they pick from a typed catalog, and the schema is your control surface for what is and is not allowed during a run.

If you operate multiple lines of business (commercial, Medicare Advantage, Medicaid), register one tool per LOB or pass a line_of_business parameter and switch behavior server-side. Either pattern keeps the audit trail clean and lets SEEMR learn LOB-specific routing.

{
  "tool_name": "health_rule_check",
  "endpoint_url": "https://rules.internal/v1/check",
  "http_method": "POST",
  "auth_method": "bearer_passthrough",
  "parameters_schema": {
    "type": "object",
    "properties": {
      "plan_id":    { "type": "string" },
      "claim":      { "type": "object" },
      "context":    { "type": "object" }
    },
    "required": ["plan_id", "claim"]
  }
}

VDF AI stores the tool in tool_catalog with tool_type='http' and merges it into the agent catalog — visible only to the owner or to your domain.

2

Define an Intent Template for "adjudicate-claim"

Intent templates teach Networks v3 how to decompose a request. For adjudication, the template names the sub-intents (eligibility, medical necessity, plan benefit lookup, exclusion check, fraud signal) and the tools each sub-intent is allowed to call. The template is the unit of governance — change the template and you change the whole network's behavior, with a versioned audit trail.

Keep templates small and composable. A complex prior-authorization workflow is just an adjudicate-claim template that conditionally invokes a prior-authorization template when a procedure code requires it. Reuse beats one-off pipelines every time.

  • Eligibility → member_lookup + policy_status
  • Medical necessity → health_rule_check + RAG of clinical guidance
  • Exclusion → RAG of plan documents + structured exclusion lookup
  • Fraud signal → vector search on prior denials
3

Author the System Prompt for the Rule Checker Agent

The system prompt encodes how the agent must reason, justify, and cite. Keep it deterministic and auditable. The goal is not creativity — it is reliable evidence packaging. The prompt should specify the exact JSON shape of the output, the citation requirement, the escalation conditions, and the explicit "do not" guardrails.

You are a Health Insurance Rule Checker.
Always:
 - Quote the plan clause and CMS reference verbatim.
 - Call health_rule_check before producing a decision.
 - Return JSON: {decision, reason, citations[], confidence}.
Never:
 - Speculate beyond the rule set.
 - Reveal PHI outside the requested fields.
4

Vectorize plan documents and CMS guidance with VDF Data

Use VDF Data's Vector DB Builder to chunk and embed plan booklets, schedules of benefits, and regulator guidance into a pgvector index. Bind that index as a rag_vector_query tool inside the Network.

5

Compose the Network and let SEEMR govern routing

In Network Labs, drop the Rule Checker Agent, the RAG retriever, and the Custom HTTP Tool onto the canvas. Bind them to the adjudicate-claim intent template. SEEMR then governs which model handles which sub-intent — high-stakes adjudication on your private high-capability model, retrieval on a small, energy-efficient SLM.

6

Monitor every adjudication in Live Execution Monitoring

Every claim flows through Network Flow with timing, success rate, and per-node logs visible in real time. Reviewers can pause auto-scroll, replay a run, or escalate to a human.

VDF AI Live Execution Monitoring of a running network
BUSINESS OUTCOMES

What changes once the rule checker is live

40–60%

faster first-pass adjudication on routine claims, with no PHI leaving the network.

100%

of decisions carry plan-clause citations and rule-engine evidence — ready for any audit.

~30%

energy reduction via SEEMR routing routine sub-intents to small private models.

SELF-EVOLVING GOVERNANCE

SEEMR keeps the rule checker honest as plans evolve

Every adjudication run is a signal. SEEMR's Model Governance and Knowledge Graph learning modes re-balance which model handles which sub-intent, expose drift on plan amendments, and protect cost and energy ceilings.

FREQUENTLY ASKED QUESTIONS

What payer teams ask before shipping a VDF AI rule checker

Is patient data ever sent outside our network when we use this playbook?

No. The entire pipeline — connectors, vector indexes, agents, and the rule engine call — runs inside your VDF AI deployment. Models can be cloud-hosted if you choose, but you also have the option to use fully on-prem or air-gapped models. PHI and PII never leave the perimeter unless your domain policy explicitly allows it.

How does VDF AI handle plan amendments and CMS updates?

Plan documents and CMS guidance are re-indexed on a schedule (or on demand) by VDF Data. Effective dates are captured in the Living Knowledge graph, so the Rule Checker Agent retrieves the version of a clause that was current at the date of service. SEEMR re-balances routing when drift is detected.

Do we still need our existing rule engine?

Yes — and that is intentional. VDF AI does not replace your deterministic rule engine. It wraps your engine as a Custom HTTP tool, then layers reasoning, citation, and evidence packaging around it. The result is a hybrid system where deterministic logic remains authoritative and the AI handles ambiguity, retrieval, and explanation.

What does an audit reviewer actually see?

Every adjudication is replayable in Live Execution Monitoring. The reviewer can see the input claim, the intent decomposition, every retrieved chunk, every rule-engine call, the model selected by SEEMR for each sub-intent, and the final structured decision with citations.

Which models does the Rule Checker use?

Whichever models you register. Most deployments mix a high-capability private model for medical necessity reasoning with smaller SLMs for routine eligibility and benefit lookups. SEEMR routes per sub-intent based on outcomes, cost, latency, and energy.

How long does a typical rollout take?

Pilot networks usually run in production within four to six weeks: one week to register sources and tools, two weeks to author intent templates and prompts, one to two weeks of Accuracy Testing on golden datasets, and a final cutover week. Larger payer rollouts run quarter-by-quarter by line of business.

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GET IN TOUCH

You Have Questions

Tell us what you’re trying to achieve—governed AI Networks, enterprise RAG, deep integrations, or on‑premise deployment. We’ll help you map the right architecture, security posture, and rollout path. If you’re moving beyond AI pilots and need scalable, auditable execution, reach out—our team is ready to help.