California legislature takes action to eliminate prior authorization

The California legislature is considering a bill that would prohibit prior authorizations for any healthcare service if the plan or insurer approved or would have approved not less than 90 percent of the prior authorization requests a provider submitted in the most recent completed one-year contracted period.

Advertisement

If approved, SB 598 would go into effect on Jan. 1, 2026, according to the text of the bill, published Aug. 14. 

The bill would set standards for providers’ prior authorization exemptions and for denials, rescission and appeals of exemptions. It would also authorize plans or insurers to evaluate the continuation of a prior authorization exemption once every 12 months. 

The bill would also require insurers to provide physicians with an electronic prior authorization process option. 

It would also require a plan or insurer to have a process for annually monitoring prior authorization approval, modification, appeal and denial rates to identify services, items and supplies that are regularly approved, and to discontinue prior authorization on those services, items, and supplies that are approved 95 percent of the time. 

At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.

Register to Attend Webinar

Is ambulatory care healthcare’s big margin engine? 4 leaders weigh in

Wednesday, July 29
1:00 PM - 2:00 PM CDT

Presenters: Joe Ganley, athenahealthJeffrey Flynn, CASC, Gramercy Surgery CenterBryan Tsao, Access Center, Loma Linda University HealthJason Zepeda, Northridge Hospital Medical Center, CommonSpirit HealthGreg DeConciliis, PA-C, CASC, Boston Out­Patient Surgical Suites

Advertisement

Next Up in ASC Coding, Billing & Collections

Advertisement

Comments are closed.