Reasons for Prior Authorization - Print 2025

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These steps are usually done manually, often through a cascade of phone calls, faxes and emails between payer and provider. The responsibility falls on the provider to continue to follow up with the insurance company until there is resolution of the prior authorization request an approval, redirection, or denial.
Purpose and costs Insurers have stated that the purpose of prior authorization checks is to provide cost savings to consumers by preventing unnecessary procedures as well as the prescribing of expensive brand name drugs when an appropriate generic is available.
Your doctors office is responsible for obtaining prior authorization. They will submit a request to your insurance provider to get approval, whether its for a service or for a medication. Usually, your physician will have a good idea of whether they need to get prior authorization.
Some services, tests, or procedures are more likely than others to need prior authorization. Examples of services that commonly require prior authorization before being approved include: Diagnostic imaging (such as MRIs, CTs, and PET scans) Durable medical equipment (such as wheelchairs)
Types of Pre-Authorization Surgical Pre-Authorization: Diagnostic Pre-Authorization: Treatment Pre-Authorization: Medication Pre-Authorization: The pre-authorization process typically involves the following steps: The Importance of Pre-Authorization in Medical Billing.
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Prior authorization is a way for insurance companies to review the medical service, procedure, item, or medication requested and make sure that its necessary for your care. Examples of services or procedures for which prior authorization may be needed include: admission to a hospital or skilled nursing facility.
Prior authorization requires your doctor or provider to obtain approval from your health plan before providing health care services or prescribing prescription drugs. Without prior authorization, your health plan may not pay for your treatment or medication. (Emergency care doesnt need prior authorization.)

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