Prior authorization is meant to help insurance companies control costs. It makes healthcare providers get approval before giving certain treatments, procedures, or medicines. While prior authorization tries to make sure resources are used correctly, the process can cause many problems.
A 2021 survey by the American Medical Association (AMA) found that 93% of doctors saw delays in patient care because of prior authorization. About 82% said these delays made patients stop their treatments. Providers spend around 13 hours each week just doing prior authorizations. Radiation oncology clinics face very high costs from prior authorizations, estimated at about $40 million every year. These costs include direct and indirect work from all the extra paperwork.
Delays and extra work also add to provider burnout and unhappiness. Nearly 90% of doctors said prior authorization made burnout worse. Patients often face long waits and uncertainty, which can harm their health or interrupt ongoing care.
The government is trying to reduce prior authorization problems. The Centers for Medicare & Medicaid Services (CMS) made a rule called the CMS Interoperability and Prior Authorization Final Rule. It starts mainly in 2026. This rule applies to Medicare Advantage, Medicaid, CHIP, and some health plans through federal exchanges.
Key parts of the rule are:
The rule also adds an “Electronic Prior Authorization” measure to a payment system called MIPS. It encourages hospitals and doctors to use electronic tools for submitting prior authorizations.
Besides government rules, many healthcare groups and insurers work together to fix prior authorization problems. Groups like the American Hospital Association (AHA), American Medical Association (AMA), and others issued a statement to reduce the burden of prior authorization.
They plan to:
This teamwork works to lower paperwork but still keep quality and safety checks.
Moving from paper and fax prior authorizations to digital methods improves speed and efficiency. Electronic prior authorization connects with existing Electronic Health Records (EHRs). This lets providers send prior authorization requests inside the systems they use daily.
Surescripts’ ePA platform is one example. It helps reduce provider work and speeds up getting medicines. In 2022, electronic prior authorization use grew by 44%. Providers usually get answers in less than four minutes. The system uses specific questions for each plan that cut out extra paperwork, saving about 10 minutes for each request. One health system noticed a 6% increase in patients picking up prescriptions after using ePA.
Providers have shared their views. Candace Minter from Sentara Medical Group said her team now does ten electronic prior authorizations in the time it used to take for one or two on paper. Jennifer Kohlbeck from Advocate Aurora Health said she saves up to 45 minutes per medication authorization.
This digital method also shortens waiting for patients—saving more than two days—and improves talking between providers and insurance companies. Faster processing means patients can start needed treatments more quickly, which might lead to better health.
New tools using artificial intelligence (AI) change how prior authorization workflows work in healthcare. AI can read insurance rules, guess which requests will be approved, and fill out paperwork by using clinical data from EHRs.
For example, Surescripts’ “Touchless Prior Authorization” uses a system across the country to automatically add clinical info into prior authorization requests. Pilot tests showed:
These results mean much less work for medical practices and quicker treatment for patients. AI tools take away manual data work and repetitive tasks, letting staff spend more time with patients instead of on paperwork.
Hiring staff specialized in prior authorization and trained on these tools can also help. These specialists guide providers through complex insurance rules, lower denials, and improve talking with patients. This helps reduce staff burnout and raises satisfaction.
Technology supporting prior authorization relies on growing healthcare IT standards such as:
Companies such as 1upHealth build their prior authorization solutions using FHIR standards. This ensures smooth connections with big EHR systems like Epic and Meditech. Their platforms show providers and payers real-time status of prior authorization.
Using universal data sharing lowers repeat data entry caused by many different portals and communication systems. It also helps apply programs where providers with good records may skip some prior authorization steps, cutting extra work.
For medical practice leaders and IT managers in the U.S., using these technologies and workflows is important for:
Healthcare practices that use automated and AI-based prior authorization tools can better meet rising rules while running efficiently and improving patient care.
This changing environment shows growing agreement among policymakers, providers, insurers, and technology makers that modern prior authorization with digital tools and partnerships is needed for a healthcare system that lasts. Even though problems remain, AI-driven automation and better data sharing standards offer a helpful way forward for U.S. medical practices trying to give fast and good care to their patients.
PAs serve as a cost management tool for insurance companies, helping to determine whether a specific medical service will be covered. They aim to control healthcare costs but often lead to increased administrative burdens for healthcare providers (HCPs).
PAs create workflow inefficiencies, consume significant administrative time (averaging 13 hours a week for HCPs), and often result in delayed patient care and frustration among providers and patients.
A 2021 AMA survey indicated that 93% of physicians experienced delayed access to care due to PAs, with 82% reporting that patients abandon treatments due to these delays.
Providers can enhance approval rates by creating a master list of procedures requiring authorization, obtaining it ahead of procedures, tracking denial reasons, and educating patients about the PA process.
Embracing electronic prior authorizations (ePAs) enhances efficiency and reduces the manual burden, allowing HCPs to submit PAs electronically, which can lead to faster medication access for patients.
Essential metrics include verification of benefits, clean claim submission rates, denial rates, adjusted collection rates, and ensuring the negotiated fee schedule is appropriate to maintain an optimized workflow.
Specialists improve PA workflow efficiency, enhance patient interactions, boost satisfaction, reduce staff burnout, and ultimately increase revenue for healthcare practices.
By ensuring optimized workflows, specialists facilitate quicker approvals and reduce denials, leading to improved cash flow and financial performance for healthcare providers.
Educating patients on the PA process can help manage their expectations, reduce frustration related to delays, and encourage adherence to treatment recommendations despite potential hurdles.
Providers should subscribe to payer newsletters and industry updates to be informed about evolving PA requirements and standards, enabling them to adapt their workflows accordingly.