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The Burden Imposed by Prior Authorization Requirements

Deborah Levenson  |  Issue: February 2025  |  February 9, 2025

Dr. Phillips says Mr. Sahni’s paper presents interesting ideas, but noted some devil-in-the-details concerns related to electronic PA requirements and payer integration into electronic medical records (EMRs) and real-time eligibility solutions. For example, it’s unclear whether various EMRs are capable of allowing this technology and how its use could slow the workflow if additional steps are needed by a provider when they’re in the room with a patient, adds Dr. Phillips.

Ms. Ruffing

Victoria Ruffing, RN-BC, director of patient education and director of nursing at the Johns Hopkins Arthritis Center, Baltimore, questions how much AI would alleviate PA burden. In her organization, she says, peer-to-peer reviews and the appeals process take up the bulk of time spent on PAs.

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Charles F. Haberkern, MBA, chief executive officer of Rheumatology Specialty Center, Willow Grove, Pa., notes PAs for infusion drugs take at least seven days in his practice, which has 18 providers and four full-time employees dedicated to prior authorization requirements. This delay prolongs pain for patients. In addition, many insurers require that physicians and patients use different drugs from what rheumatologists order. If the initial drugs do not work and another appeal is necessary, “the approval time is often months,” he says.

Mr. Haberkern

To deal with PA processes, suggests Mr. Haberkern, rheumatologists must understand each payer’s formulary and preferred medications. “Some payers actually exclude some drugs, so sending authorizations for those can be a time-consuming process often ending in a denial—and a huge waste of valuable time,” he says. Some insurers score physicians according to adherence with company best practices, so he urges practices to try to relieve physicians of PA workload and monitor physicians who may be seen as outliers.

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For each insurance company, his staff has guidelines showing what needs approval and what will never be approved. Using AI to fill out forms would have a “relatively minor” benefit, Mr. Haberkern says. “The problem area is the denials, appeals and constant back and forth that takes place.”

Mr. Haberkern asked in conclusion,“Who is AI responsible to? Payers, providers or patients?”


Deborah Levenson is a writer and editor based in College Park, Md.

References

  1. Sahni NR, Istvan B, Stafford C, Cutler D. Perceptions of prior authorization burden and solutions. Health Aff Sch. 2024 Sep;2(9):qxae096.
  2. Sahni NR, Gupta P, Peterson M, Cutler DM. Active steps to reduce administrative spending associated with financial transactions in US health care. Health Aff Sch. 2023 Nov;1(5):qxad053.
  3. Sahni NR, Carrus B, Cutler DM. Administrative simplification and the potential for saving a quarter-trillion dollars in health care. JAMA. 2021 Nov 2;326(17):1677–1678.
  4. Sahni NR, Mishra P, Carrus B, Cutler DM. Administrative simplification: How to save a quarter-trillion dollars in US healthcare. McKinsey & Company. 2021 Oct 20.

Disclosure

Mr. Sahni reported receiving equity from Kyruus.

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Filed under:Patient PerspectivePractice SupportTechnology Tagged with:artificial intelligenceprior authorization

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