CMS May Further Rein In Prior Authorization
Bloomberg reports that the Centers for Medicare and Medicaid Services (CMS) is exploring proposals to further rein in prior authorization (PA) and other utilization management. The exploration is likely on Medicare Advantage (MA).
In 2024, CMS introduced sweeping PA restrictions, requiring MA plans largely to follow the traditional program requirements for benefit coverage. When CMS Administrator Dr. Mehmet Oz appeared before the Senate for his confirmation hearings, he bemoaned PA in MA and stated that he wanted to reform it. He specifically mentioned that he wanted to streamline the number of PAs allowed and ensure consistency across plans.
Indeed, Bloomberg reports that the aim of the CMS exploration would be to cut the number of medical procedures subject to PA and drive uniformity across plans. Another recent rule also requires electronic PA and CMS is looking at further driving this.
Health plans also are battling state PA restrictions. Thus, many health plans have already begun lifting PAs and reforming them.
In other news, a package of California bills aiming to streamline PA recently passed Senate and Assembly health committees.
In still other news, the Iowa Senate passed a bill that would set new requirements for pharmacy benefit managers (PBMs). This is a major trend at the state level as well.
Additional articles: https://www.beckerspayer.com/payer/california-prior-authorization-reform-package-takes-a-step-forward/ and https://www.beckershospitalreview.com/pharmacy/iowa-senate-passes-pbm-bill-4-things-to-know/
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https://www.modernhealthcare.com/policy/cms-insurance-prior-authorizations