Which of the following is an example of a prior approval type?

Study for the PTCB Billing and Reimbursement Test. Use flashcards and multiple choice questions, each with hints and explanations. Prepare for your exam!

Multiple Choice

Which of the following is an example of a prior approval type?

Explanation:
Prior authorization is a process where the insurer must approve coverage for a medication before it is dispensed, usually for drugs that are restricted or require justification of medical necessity. A request for restricted meds is an example of this process because it directly involves submitting information to obtain payer approval for a drug that is not automatically covered. The other options don’t involve getting payer approval: guidelines for patient education are educational resources, not a payment approval step; a prescription filled without prior authorization means no PA was needed or obtained; and generic substitution concerns substituting a generic version for a brand name under formulary rules, which is a substitution policy rather than a PA action.

Prior authorization is a process where the insurer must approve coverage for a medication before it is dispensed, usually for drugs that are restricted or require justification of medical necessity. A request for restricted meds is an example of this process because it directly involves submitting information to obtain payer approval for a drug that is not automatically covered. The other options don’t involve getting payer approval: guidelines for patient education are educational resources, not a payment approval step; a prescription filled without prior authorization means no PA was needed or obtained; and generic substitution concerns substituting a generic version for a brand name under formulary rules, which is a substitution policy rather than a PA action.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy