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Bill > SB1519


HI SB1519

HI SB1519
Relating To Prior Authorization.


summary

Introduced
01/23/2025
In Committee
01/27/2025
Crossed Over
Passed
Dead

Introduced Session

2025 Regular Session

Bill Summary

Establishes a comprehensive regulatory framework for prior authorization process in the State, including disclosure and notice requirements for utilization review entities regarding their prior authorization requirements and restrictions; qualifications and criteria for prior authorization review and appeals personnel; prior authorization process for non-urgent and urgent health care services, including the time frame by which utilization review entities must render a decision; adverse determination and appeal processes; prohibition of prior authorization for emergency health care services and medication for opioid use disorder; payments to health care providers; length and duration of prior authorizations; and exemptions for certain health care providers. Requires health insurers to utilize NCPDP SCRIPT Standard electronic prior authorization transactions by 1/1/2026. Requires utilization review entities to submit annual reports to the Insurance Commissioner each year. Requires the Insurance Commissioner to submit annual reports to the Legislature. Requires the Insurance Commissioner to adopt rules by 1/1/2026.

AI Summary

This bill establishes a comprehensive regulatory framework for prior authorization in healthcare, addressing the complex and often opaque process that can delay patient care and create administrative burdens. The bill requires utilization review entities (health insurers and similar organizations) to make their prior authorization requirements transparent by publishing detailed clinical criteria and approval/denial statistics on their websites. Key provisions include mandating that prior authorization decisions be made by physicians in the same specialty as the healthcare service being reviewed, setting strict time frames for approval or automatic approval of both non-urgent and urgent healthcare services, and prohibiting prior authorization for emergency services and medications for opioid use disorder. The bill also requires insurers to use electronic prior authorization standards by January 1, 2026, and mandates that utilization review entities submit annual reports to the Insurance Commissioner detailing their prior authorization request outcomes. Additionally, the legislation creates exemptions for healthcare providers with high prior authorization approval rates and ensures continuity of care by requiring prior authorizations to be honored for at least 90 days when a patient changes health plans. The overall goal is to improve patient care, reduce administrative obstacles, and increase transparency in the healthcare authorization process.

Committee Categories

Business and Industry

Sponsors (2)

Last Action

Carried over to 2026 Regular Session. (on 12/08/2025)

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