Why do insurance companies require prior authorizations for certain medications?

Question

Quizplus · Accepted Answer

Prior authorizations are required by insurance companies to ensure treatment occurs in a stepwise, cost-effective approach. Patients should try lesser expensive options before trying more expensive treatment options. This process decreases costs to the patients, and the healthcare system as a whole. If a patient has tried and failed the less expensive treatments, the doctor can request coverage for a more expensive option through the prior authorization process.

Why Do Insurance Companies Require Prior Authorizations for Certain Medications