Prior Authorizations and Referrals

What is Prior Authorization?

Prior Authorization, sometimes referred to as a “pre-authorization,” is a requirement from your health insurance company that your doctor obtain approval from your plan before it will cover the costs of a specific medicine, medical device or procedure.

Each health plan has a different approval process for prior authorization and uses a different form for each medication procedure.

Without this prior approval, your health insurance plan may not pay for your treatment and other options can be explored.

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Example of Prior Authorization for an RX

Example: Drug A (cheap) and Drug B (expensive) both treat your condition. If your healthcare provider prescribes Drug B, your health plan may want to know why Drug A won’t work just as well. If you can show that Drug B is a better option, it may be pre-authorized.

What is the Authorization Process for an RX?

  • Your provider writes a prescription which can be paid for through insurance coverage, Rx coupons, medication assistance programs, or sometimes found at a lower cost at one of our Canyonlands pharmacies.
  • Occasionally, your insurance tells the pharmacy and/or your provider that the prescription requires prior authorization.
  • You and your provider decide if you will choose a different medication or go through the prior authorization process.
  • The prior authorization process will require information such as treatments tried, side effects experienced, or other reasons for the chosen medication and can take up to 14 days once submitted. If denied, your provider can appeal with more documentation.

Be sure to follow up with or communicate back to your provider how the medication works for you.

Does Medicare require Prior Authorization?

Traditional Medicare does not require prior authorization for the vast majority of services, except under limited circumstances. Medicare Supplement plans follow Medicare’s guidelines to determine if a procedure is medically necessary and eligible for coverage.

Medicare Advantage plans can require enrollees to get approval from the plan prior to receiving a service, and if approval is not granted, then the plan generally does not cover the cost of the service. Medicare Advantage enrollees can appeal the plan’s decision.

Does Medicaid require Prior Authorization?

Prior Authorization is issued for AHCCCS covered services within certain limitations, based on the following:

  • The member’s AHCCCS eligibility;
  • Provider status as an AHCCCS-registered FFS provider;
  • The service requested is an AHCCCS covered service requiring PA;
  • Information received from the provider meets the requirements for issuing a PA number;
  • The service requested is not covered by another primary payer (e.g., commercial insurance, Medicare, other agency).

Prior Authorization to See A Specialist

Sometimes a referral is ordered by a Patient Care Provider during or after an office visit. The referral staff consults with the patient’s insurance plan to determine if prior authorization is needed or if there are preferred/in-network specialty providers or facilities that patient should use.  The office staff submit any required paperwork and insurance approval may take 1-14 days. *Patients may move forward with any referral without authorization understanding that services may not be covered, and they may bear full financial responsibility.

  • The patient care staff communicates the referral to a specialist along with relevant visit notes and test results.
  • The referral is reviewed by a specialty office.
  • Patients will be informed by office staff if prior authorization is required and if the service is approved or denied for coverage. The fastest way to communicate with our teams is through our Patient Portal, or you may call your local clinic to check on the status.
  • Patients should contact the specialty office or facility to schedule their appointment.
  • Specialty service occurs and specialist communicates plan back to patient and Patient Care Provider who ordered referral.

The referral process ends when the Patient Care Provider receives the specialist report, then follows up with the patient as needed. Referrals expire after 90 days.

Patient Care office staff may send reminders and referral tracking requests every 30 days until the referral report is received or 90 days have passed since the order date.

Prior Authorization
Our Canyonlands pharmacists can also help with any issues regarding paying for your medications.

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Prior Authorization Form