Understanding the Importance of Authorization in Medical Billing
Authorization is the most critical step in the medical billing procedure. It is important for healthcare providers to allow payment for the services rendered. It also prevents patients from receiving unforeseen medical bills. Authorization means that the insurance company agrees to pay for the cost of the service for which it will be rendered. The most expensive and elective care usually requires pre-authorization. The absence of authorization can lead to denial of a claim, which would again mean that insurance would not pay, leaving the patient liable for the entire cost. Knowledge of how authorization works might help relieve stress and prevent care delays.