Describe how pre-authorization under managed care plans has changed the reimbursement cycle in the United States.

What will be an ideal response?

Pre-authorization requires patients to seek approval for testing or admission in order for their insurance or managed care plan to pay for services. This requires more "front-end" work to be done by either the patient or the healthcare staff. Coding for preadmission diagnoses supports pre-authorization and will become more complicated with the adoption of ICD10CM/PCS.