Frequently Asked Questions
Prior Authorization
& Referral FAQs
Answers to common
questions about payer
authorization requirements,
medical necessity documentation,
referrals and request tracking.
What is prior authorization in healthcare?
Prior authorization is a
health plan review process
that may require approval
before certain services,
procedures or treatments
are provided or covered.
What is the difference between prior authorization and referral management?
Prior authorization involves
an insurance payer's review
of a requested service.
A medical referral involves
directing a patient to another
provider and may have separate
plan-specific administrative requirements.
What documentation may be needed for a prior authorization?
Requirements vary by payer
and service. They may include
provider orders, relevant
medical records, diagnoses,
proposed procedures,
treatment history and
clinical information
supporting applicable criteria.
Does prior authorization guarantee insurance payment?
No. Prior authorization
does not guarantee that a
claim will be paid.
Final coverage and payment
depend on applicable
plan terms, services rendered,
claim information and
payer adjudication.
Who determines whether a service meets medical necessity requirements?
The treating clinician
supplies the clinical
rationale and documentation.
The payer applies its
applicable coverage and
review criteria to decide
on the authorization request.
Administrative support staff
coordinate information but
do not replace clinical judgment.
How long does prior authorization take?
Processing times depend
on the health plan, program,
service type, request priority,
completeness and applicable
rules. There is no universal
turnaround time for every
payer or request.
What happens if a prior authorization request is not approved?
The requesting team should
review the payer's stated
reasons and available options.
These may include supplying
additional information,
correcting a request,
reconsideration or
appeal, depending on
the applicable rules.
Can healthcare practices outsource prior authorization management?
Healthcare organizations
may outsource selected
administrative steps,
including requirements checks,
submission coordination,
documentation follow-up
and status tracking,
with appropriate permissions,
oversight and agreed scope.