What term describes the verification of necessity before services are administered?

The term that describes the verification of necessity before services are administered is preauthorization. This is a process used primarily by health insurance companies where they assess whether a specific service, procedure, or prescription is medically necessary and covered under the patient’s insurance plan before the service is provided. The goal of preauthorization is to ensure that the planned medical service meets the criteria set by the insurer and helps avoid unnecessary costs for both the patient and the insurance provider.

In the context of the other options:

Medical necessity refers to the healthcare services that are necessary for diagnosing or treating a condition, but does not specifically denote the verification process. Deductible refers to the amount a patient must pay out-of-pocket before their insurance begins to cover services, and coinsurance is the percentage of costs that the patient is responsible for after meeting the deductible. Neither deductible nor coinsurance pertains to the process of obtaining approval prior to receiving medical services.