Congress Advances Prior Authorization Reform: A Step Towards Transparent and Streamlined Healthcare Access

Posted by Cindy Williams on Aug 1, 2023 12:22:06 PM
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In a significant stride towards improving healthcare access and transparency, Congress has once again entered the prior authorization debate. The aim is to streamline and enhance the process through which insurers can deny access to covered services. With the House Ways and Means lawmakers advancing a bill as part of a larger health package, the focus is on overhauling and accelerating prior authorization decisions for Medicare Advantage plans. This move has garnered widespread support from both House members and senators, signaling a potential breakthrough in the effort to reshape healthcare access in the United States.

A Renewed Push for Reform:

During the last Congress, a prior authorization reform package passed the House before stalling due to cost concerns. However, this time around, the issue remains a top priority for physician groups such as the American Medical Association (AMA) and the Medical Group Management Association. These groups argue that the current prior authorization process places excessive burdens on medical decision-making, necessitating more transparent practices.

Jesse Ehrenfeld, the president of AMA, emphasizes the need for publicly reported program statistics and a better understanding of the reasons behind denials. The goal is to eliminate practices of clawing back approvals, ensuring that patients can access necessary medical services without unnecessary delays.

Medicare Advantage Plans in the Spotlight:

With the current debate, there is also an increased focus on the prior authorization practices of Medicaid managed care plans. A recent Health and Human Services Department watchdog report highlighted high rates of prior authorization denials in some of these plans, further fueling the urgency for reform.

Congressional Efforts and Concerns:

A major concern is the potential for electronic interfaces to limit patients' ability to access information about costs and coverage for services. While the proposed CMS rules from February require insurers to provide status reports on prior authorization requests, including specific reasons for denials, some worry that these changes may not go far enough.

Representatives such as Rep. Suzan DelBene (D-Wash.) are pushing for requirements to expedite authorization decisions from 72 hours to 24 hours, aiming to significantly improve patient care by reducing unnecessary delays.

Potential Roadblocks Ahead:

Despite the progress made with the prior authorization reform, it is crucial to acknowledge that the health package, including these measures, passed out of Ways and Means along party lines due to unrelated transparency issues. This indicates potential difficulties in the journey towards comprehensive reform. However, the sheer number of House members and senators supporting this effort indicates a collective acknowledgment of the need for change.

The Insurers' Perspective:

In defense of prior authorization, insurers argue that it plays a crucial role in protecting patients and ensuring that they receive clinically necessary care. The America's Health Insurance Plans (AHIP), a major health plan trade group, has requested CMS to consider the time needed for payers to adjust to the new process, suggesting an orderly rollout to digitizing the system while meeting turnaround time requirements.

Conclusion:

The renewed focus on prior authorization reform demonstrates Congress's commitment to improving healthcare access and transparency. As the debates intensify, it's essential to strike a balance between efficient prior authorization processes and empowering patients with information about cost and coverage.

The push for reform aligns with the aspirations of prominent physician groups and lawmakers alike, reflecting a collective desire for meaningful change. While potential roadblocks may arise, the increasing bipartisan support indicates a growing recognition of the necessity to overhaul the current system.

In the coming days, healthcare stakeholders, patients, and providers alike will eagerly await further developments on this vital healthcare reform journey. MPOWERHealth stands committed to keeping you informed and updated on all developments in the dynamic landscape of healthcare in the United States.

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