Prior Authorization

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Definition - What does Prior Authorization mean?

Prior authorization is a health insurer or third party's approval for a health service or prescription before the patient receives it. This allows insurers to make sure only covered expenses are billed to them.

Insuranceopedia explains Prior Authorization

When a pharmacy gets a specific prescription, they will often check to make sure prior authorization is granted by the insurance company. If it is not, the pharmacy may refuse to fill the prescription and deliver it to the patient.


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