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Legislation to Streamline Medical Prior Authorizations Becomes Law
KENAI, AK – Changes to Alaska’s health insurance statutes became law on Tuesday, July 15, that will make it faster and easier for Alaskans to get medical care and prescriptions approved by their health insurance company. Senate Bill 133, sponsored by Senator Jesse Bjorkman (R-Nikiski) through the Labor and Commerce Committee that he chairs, passed the Senate and House unanimously during the regular Legislative session. Representative Justin Ruffridge (R-Soldotna) sponsored the House companion bill.
“Alaskans should not have to fight with their insurance company to get the care they need,” said Senator Jesse Bjorkman, R-Nikiski. “This bill makes the process quicker, clearer, and fairer for everyone.”
In many cases, insurance companies require patients to obtain prior authorization before they will cover certain treatments or medications. This process can lead to delays, forcing patients to wait for the care they need. Senate Bill 133 establishes clear deadlines for insurance companies to respond to these requests and requires them to clarify their decisions and keep patients and doctors informed if their rules change.
“This new law is a major win for patients. By ensuring faster decisions and greater transparency in the prior authorization process, patients will get the care they need without unnecessary delays,” said Shaun Keef, CEO, Central Peninsula Hospital. “We appreciate Senator Bjorkman’s commitment to putting patients first.”
“I truly appreciate all the effort and cooperation from the Alaska Hospital and Healthcare Association (AHHA) and health insurers in Alaska,” continued Senator Bjorkman. “These stakeholders came together to create a process that is practicable to implement and provides the best outcome for Alaskan patients. I also want to thank Representative Ruffridge for his leadership in the House and his commitment to advancing this legislation.”
The bill requires insurance companies and healthcare providers to use secure online systems to expedite the process, safeguard private health information, and reduce paperwork. It also requires longer terms for approvals for patients with a chronic health condition, so they don’t have to keep reapplying for the same treatment.
Importantly, SB 133 protects patients with advanced Stage 4 cancer. It stops insurance companies from forcing these patients to try other treatments first if their doctor already knows what will work best. This means they can start the treatment they need right away.
SB 133 also requires the Division of Insurance to report annually on how well the system is working, including how fast approvals are happening. The Division will be able to check if insurance companies are following the rules and take action if they aren’t.
When the law takes effect on January 1, 2027, Alaskans and their doctors can expect clearer communication, faster decision-making, and a more transparent path to receiving the care they need.
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