Hi. Please come with me while I tell you why this is so fucking infuriating.
Part of my day job is to do prior authorizations, appeal prior auth denials, and generally take every bureaucratic step possible to argue with insurance companies until they consent to pay for a thing.
Prior Auths are, by and large, a way for insurance companies to delay payment. It's also an avenue of denial, but this one actually costs them some money on employees etc, so it's more about delay. Delaying payment allows them to post more profits per quarter. The longer they delay payment for more claims, the more "good quarters" the higher ups can show to investors.
Say you fucked up your knee. It twisted weird. There was a 'pop' and now you can't put weight on it. So, you take your insurance card and you go see a doc.
Your doc orders an x-ray. You go get it no problem. The x-ray says that your bones look fine, so you know the problem is soft tissue, which can't be seen on an x-ray well enough to diagnose, so your doc does the reasonable next step and orders an MRI of your injured knee.
It takes a few days to process the MRI orders, and MRIs aren't the most common equipment, there's really only a few of them near you, so it takes them a few days to call you for scheduling. They can get you in in a week and a half. You ask the scheduler if it's covered and they say they don't get all your imaging coverage details so it's best to call your insurance company. They give you a procedure code to give to the insurance company to check.
You think, "OK I will call them tomorrow" because you don't have time today to sit on hold.
You call them, you sit on hold, you give the nice customer service agent the code and they say "oh that needs prior authorization!" so you call the radiology scheduler back, wait on hold for a while, and let them know. They say they're on it.
Somewhere on the back end, someone sends all your MRI info including date and location of service, procedure code, medical justification etc to the auth department at your insurance. It takes them 3 business days to process it.
A few rounds back and forth of your insurance requesting more and more granularity of medical justification ensue, they take about 3 business days to process each response. It likely takes almost that long for your radiology back office folks/medical assistants/nurses to respond because they are:
1) Busy doing medicine or other medicine facilitating things
2) very likely short staffed and
3) going through this process for nearly every patient on their schedule.
The radiology folks call to reschedule you to a day 5 days later than your original appointment because your insurance company is requiring a peer-to-peer. A process where they have a doctor employed by the insurance company call your doctor to discuss whether or not you really, honestly, truly need the MRI.
Your doctor skips their lunch break to do the peer-to-peer and despite their best efforts and medical science being on their side, your insurance company has denied the authorization of your MRI until you try 6 weeks of physical therapy to see if that fixes your problem. If you still hurt after 6 weeks of PT, your doctor can start this process all over again and they'll approve your MRI, they promise.
So, not only did they just delay your MRI by at least 8 weeks (since it took us 2 weeks to even get to this point), they delayed your physical therapy by 2 weeks or more as well (because who knows how long it'll take you to get on a PT schedule in the first place).
Or longer! If you you didn't get the code on that first call, or didn't have the ability to wait on hold for more days, or someone who knows how to do PAs was out sick in the radiology office, or a fax got lost somewhere... Etc. In broken and inefficient systems (like most hospital systems in the country) if the right dominoes fall in the right order, this process can take months.
Or! You could get frustrated with the delays, and being made to suffer through what is likely medically a fixable problem, so you decide to just pay out of pocket. Then they don't have to pay for it at all!
Delays equal profit for insurance companies and thats what the prior authorization process is.
It is well known in the industry that the PA process is only really in place for this.
SO WHEN I SAY THAT WHEN AN INSURANCE COMPANY CEO SAYS THAT "A PRIOR AUTHORIZATION NEVER SAYS WE'RE GOING TO PAY" IT MEANS THEY ARE PLAYING IN OUR FACES.
They ARE ADMITTING THAT THEY ARE DOING MEDICAL HARM TO PATIENTS BY DELAYING CARE FOR LITERALLY NO REASON.
Drag them. Drag them all to hell.