A communication process between the Provider and Adjudicator regarding (pre)-approval for payment of a service. Authorization is an Adjudicator's commitment to pay for a service even though an Adjudicator may or may not reserve monies for the pre-approved amount. Typically, Authorizations are processed automatically by the Payor's adjudication engine.
This glossary item is based on v3. The wording may have been extended by later edits to provide additional detail.