What is the fundamental purpose of prior authorization?

• A. To assure appropriate use of medications and cost-effective therapy
• B. To speed approval for all prescriptions
• C. To restrict patients from receiving needed medicines
• D. To increase copay amounts

Answer: (A)

Prior authorization is a utilization-management process insurers use to ensure that a prescribed medication is medically necessary and represents a cost-effective choice within the patient’s formulary. Clinicians must provide documentation—such as diagnosis, prior therapies tried, and justification for using a higher-cost or specialized drug—so the payer can confirm that the therapy aligns with evidence-based guidelines and safety considerations. This helps promote appropriate use and control overall costs in pharmacotherapy.

It’s not about speeding up every prescription, and it isn’t designed to deny access to needed medicines when justification is solid. While it can create delays if additional information is needed, its purpose is not to increase copays; copayment levels are set by the plan’s benefit design rather than the prior-authorization process.