What are prior authorization numbers primarily used for?

Prior authorization numbers are primarily used to indicate payer approval for a service. In the healthcare billing process, when a provider wants to ensure that a particular service or procedure will be covered by an insurance plan, they request prior authorization from the payer. This involves submitting relevant documentation outlining the medical necessity of the service. Once the payer reviews and approves the request, they provide a prior authorization number, which serves as confirmation that the treatment has been authorized for payment. This number is critical for both the healthcare provider and the patient, as it helps prevent unexpected costs and ensures that the service can be billed to the insurance company.

Tracking service completion, verifying patient identity, and confirming appointment schedules do not directly relate to the purpose of a prior authorization number. While these are important facets of healthcare management and billing, prior authorization specifically focuses on the pre-approval from payers for services or procedures to be covered under a patient's insurance plan.