Staff Contact: Andrew Wheeler
CMS released a proposed rule that would “streamline processes related to prior authorization for medical items and services.” The rule also includes proposals to increase health data exchange through interoperability. The prior authorization proposals would apply to Medicare Advantage organizations, state Medicaid and Children’s Health Insurance Program fee-for-service programs, Medicaid managed care plans and CHIP managed care entities, and Qualified Health Plan issuers on the Federally Facilitated Exchanges. The major prior authorization improvement proposals include the following.
- requiring payers to build and maintain a Health Level 7 Fast Healthcare Interoperability Resource standard Application Programming Interface that would automate the process for providers to determine whether a prior authorization is required
- compelling payers to provide a specific reason when a prior authorization is denied
- decreasing the prior authorization timeframes to 72 hours for expedited requests and seven calendar days for standard requests
- requiring payers to publicly report certain prior authorization metrics on the payer’s website
Comments about the proposed rule are due March 13, 2023.