Administration finalizes rule requiring insurers to set time targets for prior authorization process

Reuters (1/17, Roy) reports the administration “on Wednesday finalized a rule requiring health insurers to set time targets for the prior authorization process for patients seeking approval for medical services under government-backed insurance plans.” CMS “said the rule will begin primarily in 2026.” The new “rule applies to health insurance companies providing government backed-insurance plans such as Medicare” and Medicaid.

The Hill (1/17, Weixel ) reports that under the final rule, “health insurers participating in Medicare Advantage, Medicaid or the ObamaCare exchanges will need to respond to expedited prior authorization requests within 72 hours, and standard requests within seven calendar days.” The new “rule requires all impacted payers to include a specific reason for denying a prior authorization request.” Payers “will also be required to publicly report prior authorization metrics.”

Modern Healthcare (1/17, Bennett, Subscription Publication) reports “the regulation will take effect 60 days after it formally appears in the Federal Register.” In a press release, AMA President Jesse M. Ehrenfeld, MD, MPH, said, “The American Medical Association applauds Centers for Medicare and Medicaid Services Administrator [Chiquita] Brooks-LaSure for heeding patients and the physician community in a final rule that makes important reforms in government-regulated health plans’ prior authorization programs for medical services.”

Related Links:

— “US govt sets rule meant to speed up insurance approvals,” Reuters, January 17, 2024

Posted in In The News.