What is the primary goal of pre-authorization in medical billing?

The primary goal of pre-authorization in medical billing is to ensure that specific healthcare services are covered by a patient's insurance plan before they are rendered. This process involves the healthcare provider obtaining approval from the insurance company for particular treatments or procedures, effectively confirming that the insurer will reimburse for the services based on the patient's policy. By obtaining this authorization, healthcare providers can avoid potential disputes and denials for payment that may arise if services are provided without prior approval. This proactive approach helps both the healthcare provider and the patient understand their financial obligations before undergoing treatment, leading to a smoother billing experience and reducing unexpected costs for the patient later on.

Other options, while related to financial processes, do not correctly capture the main purpose of pre-authorization. Collecting patient payments upfront typically occurs as part of the patient's responsibility rather than pre-authorization's focus. Expediting the billing process post-service is a separate concern that might not involve pre-authorization. Providing discounts on self-pay services is also unrelated to the pre-authorization process, as this primarily deals with insurance validation.