Define It for Me, Please
A key insurance term defined.
Prior Authorization. In order to be sure
certain drugs or medical services are used correctly and only when
truly necessary, a health plan may require a "prior authorization."
This means the patient or physician needs to get approval from the
patient's health plan before a particular drug or service will be
covered. Failure to obtain a prior authorization could result in
the health plan paying nothing, paying substantially less or
applying a flat penalty.
