Final answer:
The term referring to a third-party payer or insurance carrier assessing the benefit based on a less expensive alternative procedure is Preauthorization. This process happens typically within HMO plans where cost control is essential.
Step-by-step explanation:
The term that allows the third-party payer or insurance carrier to determine the benefit based on an alternative procedure that is generally less expensive than the one provided or proposed by the servicing provider is Preauthorization. Through the preauthorization process, the insurance provider evaluates the proposed services to determine what is medically necessary or appropriate, by potentially offering coverage for a more cost-effective option. This is a typical feature within health maintenance organization (HMO) plans and other types of managed care, where cost control measures are used to manage healthcare expenditures.