What is pre-authorization?

Updated: 9/26/2023
User Avatar

Wiki User

6y ago

Best Answer

To have got permission to do something before you actually need it. It is often used in a security context. Someone going to a restricted area has already been given permission to go there, so does not seek it on arrival. They may have something like a code that gives them access. It can be used in other contexts, such as in a credit card situation, where someone has been given permission to use it or to use it for beyond its normal limits.

User Avatar

Wiki User

6y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is pre-authorization?
Write your answer...
Still have questions?
magnify glass
Related questions

What is the correct term used to determine if a procedure is covered and medically necessary?


Which clause is implemented if the requirements associated with preauthorization of a claim prior to payment are not met?

hold harmless

What happens if a health insurance plan's preauthorization requirements are not met by providers?

The penalty for not meeting the preauthorization requirement is listed in your policy. In most cases the penalty is 20% of the benefit. This means that if your policy normally pays 80% of the medical costs after your deductible then the benefit would be reduced to 60% payment instead. Generally the hospital has departments that handle the preauthorization but remember that it is your responsibility to make sure this has been done. After all it is you that will be responsible for paying the penalty if it is not done.

What is the different between preauthorization and precertification?

The different between preauthorization and precertification is that pre-authorization is a process where the insurance company will not have to pay for services unless the provider gets permission to provide the service while Pre-Certification is a process whereby a payer is required to review medical necessity of the proposed service and then provide a certification number before a claim is paid

Why do gas stations take fifty dollars out each time no matter how much gas you pay for?

They dont actually take the money out. Its whats called a preauthorization. The gas station uses it to make sure that you have at least 50.00 in your checking account or availablity on your credit card. The preauthorization usually drops off your account the same business day as your purchase, and the actual charge will clear your account. Most businesses reverse the charge that day as well making it unnoticable to your funds availabity in your account.

What methods used for funding worker's compensation?

Anti-fraud legislation and increased penalties for workers compensation fraud. Anti-referral provisions. Proof of medical necessity for treatment as well as appropriate documentation. Preauthorization for major operations and expensive tests. Caps on vocational rehabilitation.

What does it mean when payroll can't pay in tenths of an hour?

If you clock in early without preauthorization, you will be paid only from your approved clock in time. If you clock in within ten minutes of your preauthorized time, you will be paid for the full hour. If you clock in more than 10 minutes late, you will be docked a full hours pay. If you clock out more than 10 minutes early, you will be docked a full hours pay. If you clock out within 10 minutes of your approved time, you will receive full pay. If you clock out late without preapproval, you will only be paid for your preapproved time. If overtime is preapproved, it will only be approved for an amount of time in full hours. There will be no approval for overtime of 15 minutes, a half hour, or 45 minutes.

Can an insurance company request an overpayment refund at any time Is there a time limit?

Texas Prompt Pay Law - Time Limitation (TAC 21.2818) * 180 Day Limit: This applies only to claims subject to the Texas prompt pay law (enacted under Senate Bill 418) and were originally paid under SB 418 provisions. If 180 days have lapsed from the date payment was received, no refund is due ** Application: In general, the Texas prompt pay law applies to fully insured HMO and preferred provider organization products licensed and sold in Texas. It does not apply to other plans, i.e., Medicare, Medicaid, workers' compensation, TriCare, self-funded employer ERISA plans, state and federal employee plans, indemnity policies, and out-of-state Blue Cross plans (BlueCard) filed to Blue Cross and Blue Shield of Texas. ** Effective Date: The Texas prompt pay law applies to any contracts that were new or renewed on or after Aug.16, 2003. To determine if SB 418 applied when the original claim was paid, check the date or renewal date of the contract with that particular carrier; the effective date of the Texas prompt pay law will vary by payer. ** Prior Claims: For claims paid before enactment of SB 418, the time limit for refunds is based on individual contractual agreements. (Read your contract language and/or other carrier publications.) ** Automatic Recoupments: Carriers must first send a written refund request before automatically recouping money from current payments. After 45 days, if the carrier does not receive the refund or a written appeal, it can recoup the refund from any current payment. ** Noncontracted Physicians: The 180-day limit applies to claims paid on or after Aug. 16, 2003, and are subject to SB 418 provisions). ** Verification: Verification, as defined in the Texas prompt pay law, is the ONLY guarantee of payment that a payer cannot recoup later. "Preauthorization" or simply "obtaining/verifying benefits" is not a guarantee. For more information about the Texas prompt pay law, go to the Physician/Provider page on the Texas Department of Insurance Web site. * Self-Funded Employer ERISA Plans - Time limits are based on individual contractual agreements. Nothing prevents carriers from automatically recouping refunds from current or future payments, regardless if the physician is contracted or noncontracted. * Medicare Overpayments - In general, there is no practical time limit after which Medicare cannot ask for money back. TrailBlazer Health Enterprises, the Medicare carrier for Texas, is required by contract to pursue refunds on overpayments. Automatic recoupments from current and/or future payments are permitted. * Medicaid Overpayments - In general, Medicaid may request refunds for up to five years. Depending on the circumstances, this time frame can be exceeded. * Civil Practice and Remedies Code §16.004 - In rare situations where no contract language governs refunds and SB 418 does not apply, the statute of limitations is four years (excluding government programs). * Preauthorization - For all payer types, preauthorization pertains only to medical necessity and is never a guarantee of payment. * Wrongful Retention - A physician should never retain any amount truly not owed to the practice. Wrongful retention of an overpayment is called "conversion" and is illegal. If the practice did not perform the service(s), or if the reimbursement is clearly more than the plan owes, the practice should return the overpayment.