Final answer:
The correct answer is d. Service is custodial in nature is not a reason to deliver a hospital-issued notice of noncoverage to a Medicare beneficiary.
Step-by-step explanation:
The correct answer is d. Service is custodial in nature is not a reason to deliver a hospital-issued notice of noncoverage to a Medicare beneficiary. A custodial service refers to long-term care or assistance with activities of daily living, which is not covered by Medicare. The other options - a. service is not medically necessary, b. service was not preauthorized, and c. service was not delivered in the most appropriate setting - are valid reasons for the hospital to issue a notice of noncoverage to a Medicare beneficiary.