Authorization in Medical Billing
Authorization in medical billing is the approval obtained from an insurance company before a healthcare service is performed to ensure it will be covered.
Authorization in Medical Billing Explained
Authorization, also known as prior authorization or pre-authorization, is required by many insurance companies for certain treatments, medications, or services. It ensures that the insurance company deems the service medically necessary before it is performed, preventing potential claim denials later.
For example, a healthcare provider must obtain authorization from an insurance company before scheduling an MRI for a patient to ensure coverage.
See common acronyms and abbreviations in Medical billing glossary.
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