BusinessAugust 17, 2026
preauthorization
pree-AW-thuh-ruh-ZAY-shun
Definition
A requirement by a health insurance plan that a provider must obtain approval for a service or procedure before it is performed in order for the plan to pay for it.
Etymology
The word combines the Latin prefix 'pre-' (before) with 'authorization,' derived from the Medieval Latin 'auctorizare' (to give authority or approval). It entered modern English usage in the context of insurance and administrative management in the 20th century.
In the news
The article highlights that denials resulting from Medicare Advantage preauthorization processes present a significant administrative challenge and financial hurdle for the company.
Encompass Health Corp (EHC) (Q2 2026) Earnings Call Highlights:
Read the full article ↗GuruFocus