What is the first level of litigation that can occur when a claim denial is appealed?

The first level of litigation that can occur when a claim denial is appealed is an in-person administrative hearing before an Administrative Law Judge (ALJ). This process allows the claimant to present their case in a formal setting, where the ALJ will listen to the evidence, review the facts of the case, and make a ruling based on the applicable laws and regulations.

This initial step is crucial in the appeal process because it provides an opportunity for the claimant to argue their position and clarify any misunderstandings related to the claim denial. The ALJ's decision can then lead to further appeals if either party is dissatisfied with the outcome; however, the hearing before the ALJ is the starting point in this legal journey.

It's important to note that options mentioning higher courts, such as the Oregon Supreme Court and the Oregon Court of Appeals, generally come into play only after administrative processes have been exhausted. The option referring to board review of the ALJ's opinion is also a subsequent step that occurs after the ALJ hearing. Thus, the administrative hearing is the correct choice as the first level of litigation following a claim denial appeal.