RFK Jr removes Insurance Pre-Authorization
In a landmark move, U.S. Health Secretary Robert F. Kennedy Jr. has announced a sweeping initiative to end the burdensome practice of insurance pre-authorization that has long frustrated patients and doctors alike. The announcement, made after a high-profile meeting with the nation鈥檚 largest health insurers, signals a dramatic shift in how Americans will access medical care, with promises of faster treatment, less bureaucracy, and improved patient outcomes.What Is pre-authorization and why is it controversial?Pre-authorization is an insurance process that requires doctors and patients to obtain insurer approval before certain tests, treatments, or medications are covered. Intended as a cost-control measure, it has become a top complaint in American healthcare, often delaying or denying care and creating mountains of paperwork for providers.Patient Impact: According to a recent KFF survey, 85% of Americans report experiencing delays in care due to pre-authorization, and about one in six insured adults have had issues with the process.Physician Burden: Doctors spend an average of 12鈥15 hours per week dealing with prior authorizations, with 91% saying the process can lead to adverse clinical outcomes and 82% stating it can cause patients to abandon treatment.What insurers have agreed toAt the June 23 roundtable, Kennedy secured commitments from major insurers鈥攊ncluding UnitedHealthcare, Aetna, Cigna, Humana, Blue Cross Blue Shield, and Kaiser Permanente鈥攖o overhaul their pre-authorization systems. Key elements of the pledge include:Reducing the Number of Services Requiring Pre-Authorization: By January 2026, insurers will cut the volume of medical services and prescriptions that need prior approval.Standardizing and Digitizing the Process: Insurers will implement electronic, real-time pre-authorization systems to replace outdated, manual paperwork.Continuity of Care: Authorizations will be honored during insurance plan changes, reducing disruptions for patients.Medical Review of Denials: All denied requests will be subject to medical review, with improved communication and transparency.Faster Responses: Insurers will expand real-time responses to authorization requests, minimizing delays.Dr. Mehmet Oz, Administrator of the Centers for Medicare & Medicaid Services, called the current system “a pox on the system,” noting that these reforms could eliminate “tens of billions of dollars of administrative waste”.While Kennedy鈥檚 announcement is historic, experts caution that pre-authorization will not disappear entirely. Harvard Medical School鈥檚 Dr. Adam Gaffney noted the changes are 鈥渋ncremental,鈥 aimed at streamlining rather than abolishing pre-authorization. Still, with insurers covering 257 million Americans pledging to reform, the impact could be substantial.Live Events(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onRobert F. Kennedy Jr.U.S. Health SecretaryInsuranceAuthorizationhealthcare reformsmedical care accessharvard medical schools
(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates….moreless
(You can now subscribe to our Economic Times WhatsApp channel)Read More News onRobert F. Kennedy Jr.U.S. Health SecretaryInsuranceAuthorizationhealthcare reformsmedical care accessharvard medical schools(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates….moreless
Explore More Stories123