We sign a lot of authorization forms in our day to day life but most of us are unaware about the fact that there are several different types of authorization forms. In this article, there is a detailed description of different types of forms and some of the commonly asked questions have also been answered through this article. As the name suggests, an authorization form is a letter seeking authority to do something. Read on for more information.

Credit Card Authorization Form

A Credit Card authorization was used prior to POS systems. They were the slips which used to authorize the dealer to credit the customer’s account and the slip was signed by the customer to give the authorization. As of now, with POS and instant payments, the need of this has been eliminated. (12+ Sample Credit Card Authorization Forms)

> Medical Authorization Form

A Medical Authorization form is a form that is signed by a person when he is applying for a medical insurance. The form authorizes the insurance company to obtain information of the client’s health record from the system. Without the form, the companies cannot obtain any information regarding your medical history. (14+ Sample Medical Authorization Forms)

What Is an Authorization Letter?

An Authorization letter is basically a written confirmation from a person or an authority. The permission allows to legally obtain information about something. It also helps the person to obtain information or anything else from a third party organization. An authorization letter can be handwritten and it can be a printed letter but it allows a person to seek information or get a work done. There are several types of authorization letter and the letters can be used for various purpose. For example, a letter can be issued by a person to a service provider to deduct money from his bank account for the services he use.

The letter only needs to be given once and once the letter is submitted to bank, the bank would allow the service provider to take money from the customer’s bank account without any further permission or document. There are various other uses of an authorization letter but the fact remains the same that it provides a permission to do something legally. An authorization can only be given by the person who is involved in the issue or the request. A guardian cannot sign an authorization letter on behalf of someone. The letter also contains the relevant details.

Prior Authorization Form

A prior authorization form helps the medical personals to obtain the information about the insurance policy of the patient. In United States of America, the medical services are a costly affair hence doctors ensure that the patient will be able to pay the bill and the treatment is suggested as per the insurance policy. (8+ Sample Prior Authorization Forms)

Direct Deposit Authorization Form

Direct deposit is a method of paying bill. It is mostly used by the telecom companies for the payment of the bill and in direct deposit, the money is taken out from a person’s bank account every month. This authorization form helps the business in setting up the direct debit facility for its customer. (10+ Sample Direct Deposit Authorization Forms)

> Background Check Authorization Form

+

Background checks are common when a person is looking for a new house or when a person starts a new job. He needs to sign an authorization form to authorize his employer or a person to verify information regarding his background. This could include verification of educational as well as criminal records. (8+ Sample Background Check Authorization Forms)

What Is A Prior Authorization Form?

In United States of America the health care is very expensive and it is not an easy thing to pay the medical bills. Insurance comes to rescue in such a case but the problem is that insurance can also deny the claims and the rate of denial is quite high. To avoid this, prior authorization was implemented. This is a system where the doctor checks with the health insurance company regarding the procedure and the medication covered. And the treatment is given as per the information made available by the insurance company to save the cost. Once the information is made available by the insurance company, the course of treatment is decided. Therefore it can be said that the insurance company provides an authorization prior to the treatment and the authorization provided in such cases is called prior authorization which is provided by the prior authorization forms.

Once the information is made available by the insurance company, the course of treatment is decided. Therefore it can be said that the insurance company provides an authorization prior to the treatment and the authorization provided in such cases is called prior authorization which is provided by the prior authorization forms.

In a prior authorization form, the insurance company covers all the details of the claim related to the health of the patient. It contains the details of the treatment and medication that they would provide cover for and they also contains the details of the treatment that they would not cover for. In other words it can be said that the insurance companies provides with the prescribed treatment for the patient. The process has received a lot of criticism from the doctors across

The process has received a lot of criticism from the doctors across country because they feel that the process takes a lot of time and the time can cause a problem to patient but there are no actions taken by any authoritative figure on this hence this remains to be a part of standard procedure. The main aim of this is to minimize the cost for the patient and the health insurance company and this also stops the doctors from prescribing an expensive drug which would work same as a generic drug.

Payment Authorization Form

A payment authorization form is given by a person when he wants to make a payment to a seller or a person from whom he availed services. There could be different modes of payment. For instance while getting a demand draft issued, a person might need to sign a bank authorization form so as to pay the bank. (9+ Sample Payment Authorization Forms)

> HIPAA Authorization Form

HIPAA stands for Health Insurance Portability and Accountability Act and under this a person who lost his job still gets the right to claim medical insurance in case of insurance. While signing a HIPAA authorization form, a person authorizes the concerned person to verify his employment status and other details. (9+ Sample HIPAA Authorization Forms)

> Employment Authorization Form

Employment Authorization Form is usually requested by the employers when a person migrates for another country where he requires a work permit to work. This helps companies in establishing the fact that the job applicant is allowed to work legally. If a company employs an illegal worker, it can face a heavy fine hence the form is required. (10+ Sample Employment Authorization Forms)

How to write sample authorization letter?

There are a lot of samples of authorization letter that are available online. To write an authorization letter, you need to first go through some of the letters to understand what should be included in a letter

  • An authorization letter is a formal and a crisp letter which defines the issue in a short yet effective manner.
  • Now you need to start writing letter by mentioning your details on the top left corner. This should be followed by the date and the personal details of the part to whom the letter is being addressed.
  • Next step is to mention the subject and to write the salutation. Now you can write the first paragraph of the letter which defines the purpose of the authorization letter.
  • The second paragraph can define the list of duties which falls under the scope of this authorization letter. This would help the third party to draw a line between the things that can be addressed with the letter and the things which cannot be addressed by the letter.
  • Next, you need to mention the dates till which the authorization is valid along with the reason of giving such authorization.
  • Now you can end the letter by mentioning your name and the contact details.

Travel Authorization Form

This form is filled by an employee while he is seeking permission to travel for any purpose. This form also helps in obtaining a visa if he is travelling outside country for the purpose of visa. The form needs to be acknowledge and accepted by the employer so as to allow the employee to travel. (9+ Sample Travel Authorization Forms)

Work Authorization Form

A work authorization form can be used by a person to a lot a work to a professional and at the same time it can also be issued by a government department to allow a person to get a work done. For example, to cut a tree, a person would require an authorization from municipal. (10+ Sample Work Authorization Forms)

> General Authorization Form

A general authorization form can be used for several purpose. It can be used to seek or give authorization for a pre-defined task. The format of such form can be found online but a person needs to be really careful while filling out such forms and the details should be mentioned with a lot of precision. (16+ Sample Authorization Forms)

When is authorization form needed?

The authorization can be used at several places. Here are some of the examples where authorization form is actually required to get the work done.

  • The authorization form is required when someone wants to set up a direct debit on their bank account. A direct debit can’t be set up without an authorization letter from the account holder.
  • The authorization letter is also required when a person needs to go through a background verification. A third party cannot obtain any personal or professional information of a person without the presence of an authorization letter.
  • An authorization letter is also required by an employer while employing a foreign national. This helps the company in ensuring that they hire only the legal workers.
  • An authorization is also required by a doctor before he can began a treatment. This letter is issued by the insurance company and the letter prescribes the treatment to the patient which will be covered under the insurance policy
  • The authorization letter can also be issued by someone to permit a person to deal on their behalf.
  • An authorization letter can also be issued by parents to a nanny. The use of this type of an authorization letter is to provide a proof to the nanny so as to help her in taking care of their child.

Conclusion

An authorization form is a really important document and a lot of care should be taken while signing an authorization form. The form should be read carefully before being signed so as to prevent frauds but at end of the day these forms help in making system better by checking the details.

Related Posts