Which of the following best describes a preauthorization?

Preauthorization refers to the process where a healthcare provider seeks approval from a health insurance company before a specific service or treatment is provided to a patient. This process is crucial for ensuring that the planned medical service will be covered by the patient's insurance policy. It acts as a safeguard for insurance companies to manage costs and ensure medical necessity of the treatments requested.

Selection of advance approval for insurance coverage captures this concept accurately. It encompasses the idea that an insurance company must review and authorize the medical necessity of a proposed service before it is rendered, confirming that the practice aligns with their policies for coverage. This can be particularly relevant for more costly or specialized treatments, ensuring that both the healthcare provider and the patient are aware of the coverage that might be provided by the insurer, ultimately reducing unexpected out-of-pocket expenses for the patient.