When would a preauthorization number be needed?

A preauthorization number is needed before providing any medical service to ensure that the insurance company approves the necessity and coverage of the service. It acts as a form of approval from the insurer, verifying that the treatment is medically necessary, and informing all parties involved about the benefits that apply. Obtaining this number helps prevent unexpected costs for both the provider and the patient, as it establishes upfront what the insurance will cover.

Getting a preauthorization is typically part of the claims process that protects all stakeholders and minimizes disputes later on regarding coverage. In contrast, the other options—billing a patient, after a patient's visit, or once a procedure is completed—do not align with the purpose of preauthorization, which is specifically to secure approval prior to the service being rendered, thereby facilitating the smooth operation of healthcare reimbursement processes.