Getting prior authorizations approved involves many people – primarily patients, healthcare professionals, and the patient’s health insurance companies.
When it comes to medication prior authorization, the process typically starts with a prescriber ordering medication for a patient. In many cases, providers may need to directly call the insurance companies, which often requires long periods of waiting and maybe even persistent calls for a couple of days.
The prior authorization process begins when a service prescribed by a patient’s physician is not covered by their health insurance plan. Communication between the physician’s office and the insurance company is necessary to handle the prior authorization.
Many physicians are not fond of the growing number of prior authorizations needed by insurance companies in recent years. A 2019 study from the American Medical Association reported that 86% of physicians believe that prior authorizations have increased in the prior 5 years.
When healthcare providers fail to obtain the proper authorization and the payer (insurance company) denies payment, the healthcare organization must decide whether to bear the expense or claim it from the patients. Procedures not covered by the patient’s health plan are clearly specified and acknowledged during the verification process. When a patient receives benefits or services that are not covered by their insurance plan, they must pay for the services. When the claim are denied as a result of the provider’s inability to obtain approval, they are obligated to pay for the expense themselves, resulting in a revenue loss that affects the entire revenue cycle.