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Prior Authorization

Prior authorization is payer review of whether a service, medication, or procedure is approved before it is provided or paid.

businessPublished 2026/06/06Last verified 2026/07/17

Healthcare compliance context

This definition is for healthcare technology research only and is not payer, billing, legal, or clinical advice. Prior authorization requirements vary by payer, plan, service, and policy.

Prior authorization is a payer workflow used to review whether a service, medication, device, or procedure meets coverage requirements before it is provided or paid. It can involve clinical documentation, eligibility information, payer portals, and follow-up communication.

AI tools may help gather documentation, draft requests, check status, or prioritize work queues. Reviewers should verify payer coverage, accuracy, auditability, human review, and PHI safeguards.

Application scenario: In operational review, this term helps teams connect a vendor claim to the revenue, access, staffing, patient communication, or payer workflow where it applies. Procurement impact: Buyers should evaluate evidence, implementation effort, pricing assumptions, reporting, security, privacy, support, and compliance responsibilities before shortlisting or contracting for a tool that depends on this capability.

Sources and review notes

These links support definition-level research and do not establish the regulatory status, safety, or suitability of any product.

CMS sources describe electronic prior authorization workflows and CMS-0057-F requirements for impacted payers, including standardized APIs, documentation requirements, request and response status, and phased compliance dates. A Medicare DMEPOS example shows how requirements can be program- and item-specific. These references do not establish coverage or authorization requirements for a particular payer, plan, service, drug, or patient; qualified payer, clinical, billing, and compliance review is required.

FAQs

How can AI support prior authorization?
AI can help collect documentation, summarize requirements, draft requests, check status, and route exceptions, but payer-specific review is still needed.

Related research

Use related glossary terms and healthcare AI tool profiles to connect terminology checks with vendor due diligence.