Utilization management, including prior authorization requirements under which a provider must secure payer approval in advance of a prescription, procedure, or admission, allows payers to review the appropriateness of treatment before it is provided. This positions payers to flag inappropriate treatment options or redirect providers to less costly care.
But prior authorization requirements can also put payers between providers and patients, limiting provider autonomy and sometimes leading to critical delays in treatment. Unsurprisingly, prior authorization has become one of healthcare’s most debated issues.
In the first of a four-part series on prior authorizations, we take a look at the arguments on both sides.