How do I avoid prior authorization denial?

Asked by: Reginald Denesik  |  Last update: August 22, 2025
Score: 4.5/5 (63 votes)

Be especially thorough with your documentation when ordering treatments or services you know do not follow the standard guidelines. Create prepopulated forms, ideally using the insurer's own forms, listing codes, diagnoses, and other information the insurer typically requires to process a prior authorization.

How do you fight a prior authorization denial?

Once you have a reason for the denial, it's time to partner with your physician's office. Give them the reason for the denial and see if there is any additional information they can provide to support the prior authorization request. Get copies of your consult notes, test results and any additional information needed.

How do you solve authorization denial?

If the insurance company indicates a billing error or missing information, patients can work with their physician to review the paperwork and fix any errors that caused the denial. They can also ask the physician to provide backup evidence or notes that could help prove that the prescription is medically necessary.

What are three possible reasons for preauthorization review denial?

According to general consensus, some of the most common prior authorization denial reasons include:
  • Incomplete or Incorrect Information.
  • Lack of Prior Authorization Request.
  • Administrative Errors.
  • Duplicate Requests.
  • Out-of-Network Provider.
  • Plan Coverage Limits.
  • Non-Formulary Medications.
  • Lack of Medical Necessity.

How to make prior authorizations easier?

16 Tips That Speed Up The Prior Authorization Process
  1. Create a master list of procedures that require authorizations.
  2. Document denial reasons.
  3. Sign up for payor newsletters.
  4. Stay informed of changing industry standards.
  5. Designate prior authorization responsibilities to the same staff member(s).

Understanding Prior Authorization

40 related questions found

Why does my prior authorization keep getting denied?

A denied prior auth request can occur when a provider's office submits a wrong billing code, misspells a name or makes another clerical error. Requests can also be denied if the prior auth request lacks sufficient information about why the medication or treatment is needed.

What happens if the authorization is denied?

If your request for prior authorization has been denied, you have the right to know why. You can ask your healthcare provider's office, but you might get more detailed information by asking the medical management company that denied the request in the first place.

How to avoid authorization denial?

By mastering the PA process, you can reduce denials, minimize delays, and optimize your workflow.
  1. Understand Insurance Requirements Early On. ...
  2. Ensure Complete and Accurate Documentation. ...
  3. Automate the Prior Authorization Process Where Possible. ...
  4. Follow Up on Requests Proactively. ...
  5. Appeal Denials Immediately.

Which health insurance company denies the most claims?

According to the analysis, AvMed and UnitedHealthcare tied for the highest denial rate, with both companies denying about a third of in-network claims for plans sold on the Marketplace in 2023, respectively.

What percent of prior authorizations are denied?

More than a quarter of physicians (27%) reported prior authorization requests are often or always denied, and more than four in five (87%) reported prior authorization requirements lead to higher overall use of resources that result in unnecessary waste.

How would you plan to decrease prior authorization denials?

Best Practices for Avoiding Prior Authorization Denials
  1. Double-check the billing codes.
  2. Use the correct spelling for all names.
  3. Fully detail why you've recommended the treatment.
  4. Outline any treatments the patient has already tried and failed.
  5. Back up your claims with evidence-based clinical guidelines.

What is the proper response to a failure to obtain pre-authorization denial?

If the denial reason was “no pre-authorization,” ask the plan to back-date one. If they will, resubmit the claim with a note including the new auth number. If they won't, appeal.

How can we prevent denials?

6 Steps to Prevent Denials
  1. Best practices to proactively prevent denials. ...
  2. Educate and communicate. ...
  3. Verify insurance prior to service. ...
  4. Know your payers. ...
  5. Accurate, appropriate documentation. ...
  6. Leveraging technology. ...
  7. Learning from mistakes avoids future ones. ...
  8. Effecting constant change starts at the top.

Why is it so hard to get a prior authorization?

Insurance companies can deny a request for prior approval for reasons such as: The doctor or pharmacist didn't complete the necessary steps. Filling the wrong paperwork or missing information such as service code or date of birth. The physician's office neglected to contact the insurance company due to a lack of time.

How to appeal prior authorization denial caremark?

The first appeal must be submitted within 180 days after receiving initial denial, and a second appeal must be submitted within 180 days after receiving first appeal denial. A LOMN is a letter written by your doctor stating why the medication should be considered for coverage or additional coverage.

What triggers a prior authorization?

Prior authorizations are usually only required for more costly, involved treatments where an alternative is available. For instance, if a physician prescribes an invasive procedure such as orthopedic surgery, it will likely require preauthorization.

How to successfully appeal an insurance denial?

Steps to Appeal a Health Insurance Claim Denial
  1. Step 1: Find Out Why Your Claim Was Denied. ...
  2. Step 2: Call Your Insurance Provider. ...
  3. Step 3: Call Your Doctor's Office. ...
  4. Step 4: Collect the Right Paperwork. ...
  5. Step 5: Submit an Internal Appeal. ...
  6. Step 6: Wait For An Answer. ...
  7. Step 7: Submit an External Review. ...
  8. Review Your Plan Coverage.

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What to do if prior authorization is denied?

If You Have a Fully-insured Policy

The next step is to resubmit the authorization. For the resubmission process, you will need to know why you were denied. Do not be afraid to call your contact and ask for a detailed explanation in writing as to why you were denied. Once you receive the explanation, read it carefully.

What happens if prior authorization is not obtained?

If you don't obtain it, the treatment or medication might not be covered, or you may need to pay more out of pocket. Review your plan documents or call the number on your health plan ID card for more information about the treatments, services, and supplies that require prior authorization under your specific plan.

What is a soft prior authorization?

Soft PA process:

At first, the doctor prescribes the medication for the patient. Once it reaches the pharmacy, the staff verifies if the given prescription requires prior authorization and if yes, they will contact the doctor who prescribed the medication and inform them of the need.

How many prior authorizations are denied?

In 2022, insurers fully or partially denied 3.4 million (7.4%) prior authorization requests. Though insurers approved most prior authorization requests, the share of requests that were denied jumped between 2021 and 2022.

How to write an appeal for denied prior authorization?

I am writing to file an appeal regarding [insurance company name's] denial of a pre-authorization for [medication name]. I received a denial letter dated [provide date] stating [provide denial reason directly from letter]. As you are aware, I was diagnosed with [migraine/chronic migraine] on [date].

Who is responsible for obtaining prior authorization?

Your doctor's office is responsible for obtaining prior authorization. They will submit a request to your insurance provider to get approval, whether it's for a service or for a medication. Usually, your physician will have a good idea of whether they need to get prior authorization.