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What does a prior authorization specialist do?

Updated January 8, 2025
8 min read

Prior Authorization Specialists are individuals responsible for the entire process of prior authorization for a client. They manage communication between stakeholders of clients, healthcare providers, and insurance companies to request for prior authorizations. Their duties include ensuring complete and updated patient and claim documentation, performing daily billings, auditing accounts for accurate submissions claim, and making sure patient treatment reimbursements are processed effectively. Prior Authorization Specialists also review outstanding accounts and handle reimbursement or billing issues to ensure clean billing claims.

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Prior authorization specialist responsibilities

Here are examples of responsibilities from real prior authorization specialist resumes:

  • Utilize CMS and InterQual criteria to establish authorizations for members requiring medical services for a Medicare advantage insurance company.
  • Manage quality communication, patient support and service representation with patients and providers to establish equipment/procedures statuses and expedite orders.
  • Work with staff to ensure proper CPT codes are submit on authorization request.
  • Demonstrate compassion while obtaining patient demographics and personal health information.
  • Register patients into the emergency department or outpatients for surgery or procedures.
  • Register patients' demographics and insurance information; execute daily outpatient and surgery reports.
  • Experience in A/R very strong, and attorneys liens.
  • Escalate issues to Medicare contractors per current business practices.
  • Review of medical records for appropriate ICD-9, ICD-10, HCPCS codes.
  • Monitor DDE system for contract adjustments, payments, and error corrections.
  • Escalate system defects with a sense of urgency to avoid member disruption.
  • Verify medical insurance, research denials, audit accounts and post payments/denials from EOB.
  • Work in the DDE system to correct, cancel and modify accounts as needed.
  • Experience in medical reports, patient triage, patient records and various administrative duties.
  • Attend on the job training in coverage provide on plumbing, heating and electrical systems.

Prior authorization specialist skills and personality traits

We calculated that 18% of Prior Authorization Specialists are proficient in Patients, Customer Service, and Medical Necessity. They’re also known for soft skills such as Computer skills, Customer-service skills, and Listening skills.

We break down the percentage of Prior Authorization Specialists that have these skills listed on their resume here:

  • Patients, 18%

    Adjudicated and resolved insurance issues for patients on kidney dialysis; communicated with other medical professionals to obtain approval for expensive medications

  • Customer Service, 8%

    Maintained excellent customer service for all in-bound calls from medical providers and pharmacies requesting prior authorizations for prescription medications.

  • Medical Necessity, 8%

    Determined medical necessity of inpatient hospitalization.

  • Medical Terminology, 6%

    Acquired knowledge of medical terminology and procedures relating to pain management.

  • Clinical Resource, 6%

    Provide clinical knowledge and act as a clinical resource to non clinical team.

  • Authorization Process, 4%

    Presented training sessions to internal departments and providers regarding prior authorization process, coverage criteria, and appropriate coding for reimbursement

Common skills that a prior authorization specialist uses to do their job include "patients," "customer service," and "medical necessity." You can find details on the most important prior authorization specialist responsibilities below.

Customer-service skills. Another essential skill to perform prior authorization specialist duties is customer-service skills. Prior authorization specialists responsibilities require that "representatives help companies retain customers by professionally answering questions and helping to resolve complaints." Prior authorization specialists also use customer-service skills in their role according to a real resume snippet: "assist with payment arrangements; appointments for new service installation, customer retention, and data entry. "

Listening skills. Another skill that relates to the job responsibilities of prior authorization specialists is listening skills. This skill is critical to many everyday prior authorization specialist duties, as "representatives must listen carefully to ensure that they understand customers in order to assist them." This example from a resume shows how this skill is used: "communicated daily with hospitals, home health agencies, and doctor's offices locally and nationally. "

Patience. prior authorization specialist responsibilities often require "patience." The duties that rely on this skill are shown by the fact that "representatives should be patient and polite, especially when interacting with dissatisfied customers." This resume example shows what prior authorization specialists do with patience on a typical day: "greet patience's data entry cash handling verify customer insurance"

Problem-solving skills. Another crucial skill for a prior authorization specialist to carry out their responsibilities is "problem-solving skills." A big part of what prior authorization specialists relies on this skill, since "representatives must determine solutions to customers’ problems." How this skill relates to prior authorization specialist duties can be seen in an example from a prior authorization specialist resume snippet: "resolved claims denials related to the prior authorization process which included account review, claim review, appeal preparation and submission"

Interpersonal skills. Lastly, "interpersonal skills" is an important element of what a prior authorization specialist does. Prior authorization specialist responsibilities require this skill because "representatives should be able to create positive interactions with customers." This resume example highlights how prior authorization specialist duties rely on this skill: "exhibit excellent interpersonal and customer service skills. "

All prior authorization specialist skills

The three companies that hire the most prior authorization specialists are:

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Compare different prior authorization specialists

Prior authorization specialist vs. Biller

Billers are medical professionals who are responsible for translating health care services into medical claims to be submitted to insurance companies. These billers are required to obtain patient medical records and interpret them to determine the billable units and services. They must manage all aspects of the medical billing process and make necessary contacts with insurance payers or patients to ensure maximum reimbursements. Billers must also provide services that are associated with internal and external customer billing and payment processing operations.

We looked at the average prior authorization specialist salary and compared it with the wages of a biller. Generally speaking, billers are paid $2,213 higher than prior authorization specialists per year.Even though prior authorization specialists and billers are distinct careers, a few of the skills required for both jobs are similar. For example, both careers require patients, customer service, and data entry in the day-to-day roles and responsibilities.

There are some key differences in the responsibilities of each position. For example, prior authorization specialist responsibilities require skills like "medical necessity," "clinical judgment," "medical terminology," and "clinical resource." Meanwhile a typical biller has skills in areas such as "patient accounts," "medical billing," "math," and "billing process." This difference in skills reveals the differences in what each career does.

Billers earn the highest salaries when working in the manufacturing industry, with an average yearly salary of $42,377. On the other hand, prior authorization specialists are paid more in the health care industry with an average salary of $34,460.billers tend to reach similar levels of education than prior authorization specialists. In fact, billers are 0.5% less likely to graduate with a Master's Degree and 1.9% less likely to have a Doctoral Degree.

Prior authorization specialist vs. Medical billing clerk

A medical billing clerk is primarily in charge of processing payments and creating billing arrangements in clinics and hospitals. Among their responsibilities include gathering and verifying patient identification, handling insurance information, coding, updating databases, and maintaining records. It is also their responsibility to assist patients by filling out forms, answering their inquiries, and referring them to other services. Moreover, a medical billing clerk must monitor patient accounts and follow-up on delinquent patient accounts, coordinating with collection agencies as needed.

A career as a medical billing clerk brings a lower average salary when compared to the average annual salary of a prior authorization specialist. In fact, medical billing clerks salary is $2,554 lower than the salary of prior authorization specialists per year.Only some things about these jobs are the same. Take their skills, for example. Prior authorization specialists and medical billing clerks both require similar skills like "patients," "customer service," and "medical terminology" to carry out their responsibilities.

In addition to the difference in salary, there are some other key differences worth noting. For example, prior authorization specialist responsibilities are more likely to require skills like "medical necessity," "clinical judgment," "clinical resource," and "authorization process." Meanwhile, a medical billing clerk has duties that require skills in areas such as "medical billing," "healthcare," "patient accounts," and "medical claims." These differences highlight just how different the day-to-day in each role looks.

On average, medical billing clerks earn a lower salary than prior authorization specialists. Some industries support higher salaries in each profession. Interestingly enough, medical billing clerks earn the most pay in the health care industry with an average salary of $34,137. Whereas prior authorization specialists have higher pay in the health care industry, with an average salary of $34,460.In general, medical billing clerks achieve similar levels of education than prior authorization specialists. They're 1.0% less likely to obtain a Master's Degree while being 1.9% less likely to earn a Doctoral Degree.

Prior authorization specialist vs. Billing representative

A billing representative assists with the overall operations of the organization's billing department. Billing representatives post payments timely on the database, update account statements, generate financial reports, release invoices, and resolve account discrepancies. They also perform client accounts reconciliation as needed, monitor account receivables, review overdated balance, and notify clients of payment updates to ensure accurate and timely billing. A billing representative must have strong analytical and communication skills to manage clients' accounts, as well as comprehensive knowledge on the accounting industry to explain the payment terms and policies of an organization to a client.

On average, billing representatives earn lower salaries than prior authorization specialists, with a $1,118 difference per year.prior authorization specialists and billing representatives both have job responsibilities that require similar skill sets. These similarities include skills such as "patients," "customer service," and "medical terminology," but they differ when it comes to other required skills.

The required skills of the two careers differ considerably. For example, prior authorization specialists are more likely to have skills like "medical necessity," "clinical judgment," "clinical resource," and "authorization process." But a billing representative is more likely to have skills like "medical billing," "patient accounts," "medical claims," and "billing system."

Billing representatives earn the highest salary when working in the technology industry, where they receive an average salary of $35,295. Comparatively, prior authorization specialists have the highest earning potential in the health care industry, with an average salary of $34,460.billing representatives typically earn similar educational levels compared to prior authorization specialists. Specifically, they're 0.2% less likely to graduate with a Master's Degree, and 1.7% less likely to earn a Doctoral Degree.

Prior authorization specialist vs. Insurance coordinator

An insurance coordinator is responsible for evaluating and validating insurance information to verify claims and process the necessary claims resolutions for parties. Insurance coordinators submit claims statements timely to the insurance officers for review, coordinate with the clients for inquiries and updates, and reach out to medical institutions for accurate filing of payments. An insurance coordinator must have excellent communication and analytical skills to assess reports, resolve claims discrepancies, and escalate high-level complaints to the officers for immediate action.

Insurance coordinators typically earn lower pay than prior authorization specialists. On average, insurance coordinators earn a $3,332 lower salary per year.While both prior authorization specialists and insurance coordinators complete day-to-day tasks using similar skills like patients, customer service, and medical necessity, the two careers vary in some skills.While some skills are required in each professionacirc;euro;trade;s responsibilities, there are some differences to note. "clinical judgment," "clinical resource," "authorization process," and "utilization management" are skills that commonly show up on prior authorization specialist resumes. On the other hand, insurance coordinators use skills like strong customer service, insurance eligibility, health insurance, and medical billing on their resumes.In general, insurance coordinators earn the most working in the pharmaceutical industry, with an average salary of $33,609. The highest-paying industry for a prior authorization specialist is the health care industry.insurance coordinators reach similar levels of education compared to prior authorization specialists, in general. The difference is that they're 1.1% more likely to earn a Master's Degree, and 1.5% less likely to graduate with a Doctoral Degree.

Types of prior authorization specialist

Updated January 8, 2025

Zippia Research Team
Zippia Team

Editorial Staff

The Zippia Research Team has spent countless hours reviewing resumes, job postings, and government data to determine what goes into getting a job in each phase of life. Professional writers and data scientists comprise the Zippia Research Team.

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