Requirement of Authorization in Medical Billing
Authorization is required to ensure that certain medical services are covered by the patient’s insurance before they are provided.
Requirement of Authorization in Medical Billing Explained
In medical billing, prior authorization helps control healthcare costs by requiring the insurance company to approve specific services, tests, or procedures. Without authorization, the claim may be denied, leaving the patient responsible for the costs.
For example, a provider obtains authorization for an MRI to ensure that the insurance company will cover the cost.
Learn more about common acronyms and abbreviations in Medical billing glossary.
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