Final answer:
Pre-authorization is the process where a provider gets permission from the insurance carrier to perform certain procedures or services. It is different from a deductible, which is an out-of-pocket payment, and a copayment, which is a flat service fee.
Step-by-step explanation:
The process required by some insurance carriers in which the provider obtains permission to perform certain procedures or services is known as Pre-authorization. This process is distinct from other insurance concepts such as a deductible, which is the amount that policyholders must pay out of their own pocket before the insurance coverage pays anything. A copayment is a flat fee paid by the insurance policyholder before receiving services. These terms are important components of an insurance policy, which requires policyholders to bear some of the costs to reduce moral hazard.