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Major U.S. health insurers, including UnitedHealthcare, CVS Health, and Cigna, announced plans to streamline the process for approving medical care, aiming to benefit 257 million Americans. This initiative will impact commercial, Medicare Advantage, and Medicaid-managed care plans, as reported by CNN.
The changes will reduce the need for prior authorizations, which have been a significant challenge for patients and providers. Insurers will implement a common electronic prior authorization process, speeding up decision timelines. By January 2027, at least 80% of electronic approvals are expected to be answered in real-time, according to AHIP.
The move follows public frustration over care denials and delays, highlighted by the killing of UnitedHealthcare CEO Brian Thompson last December. Insurers are responding to these concerns by promising to reduce the scope of claims needing preapproval and ensuring continuity of care during insurance changes.
The changes will start taking effect in 2026, with full implementation by 2027. While the initiative is seen as a positive step, experts like Ge Bai from Johns Hopkins warn that it may lead to higher premiums due to increased medical spending, as noted by Newsweek.