CMS Finalizes New Interoperability and Prior Authorization Rule

CMS Finalizes New Interoperability and Prior Authorization Rule

What You Should Know:

The Biden-Harris Administration has finalized a new rule that streamlines the prior authorization process and improves health data exchange across the healthcare system. The CMS Interoperability and Prior Authorization Final Rule (CMS-0057-F) represents a significant step towards reducing bureaucratic burdens, accelerating access to care, and fostering a more patient-centered healthcare experience.

Streamlining Prior Authorization

The rule tackles the often frustrating prior authorization process, which can delay necessary medical care and add administrative headaches for providers. Key provisions include:

– Faster turnaround times: Impacted payers (except QHP issuers on the FFEs) must send decisions within 72 hours for urgent requests and seven calendar days for standard requests, significantly reducing wait times for many patients.

– Clearer communication: All payers must provide specific reasons for denial, allowing for easier resubmissions or appeals.

– Public reporting: Similar to Medicare FFS, impacted payers must report prior authorization metrics, increasing transparency and accountability.

– Electronic Prior Authorization API: A new HL7 FHIR API will facilitate automated, end-to-end electronic prior authorization, further reducing administrative burden and delays.

Enhancing Health Data Exchange

The rule also promotes seamless data sharing across the healthcare system:

– Delayed API compliance dates: In response to public feedback, compliance with API requirements is delayed to January 1, 2027, allowing for smoother implementation.

– Expanded Patient Access API: Starting January 2027, impacted payers must include prior authorization information in their Patient Access API, empowering patients with greater control over their health data.

– New Provider Access API: Providers will gain access to their patients’ claims, encounter, clinical, and prior authorization data through a dedicated Provider Access API.

– Payer-to-Payer data exchange: Impacted payers will exchange most patient data with a patient’s permission when there are multiple payers involved, ensuring continuity of care.

The CMS Interoperability and Prior Authorization Final Rule marks a significant step towards a more streamlined and patient-centered healthcare system. By reducing bureaucratic hurdles, improving communication, and fostering data sharing, this rule holds the promise of a future where patients receive the care they need without unnecessary delays.

“CMS is committed to breaking down barriers in the health care system to make it easier for doctors and nurses to provide the care that people need to stay healthy,” said CMS Administrator Chiquita Brooks-LaSure. “Increasing efficiency and enabling health care data to flow freely and securely between patients, providers, and payers and streamlining prior authorization processes supports better health outcomes and a better health care experience for all.” The fact sheet for this final rule is available here: https://www.cms.gov/newsroom/fact-sheets/cms-interoperability-and-prior-authorization-final-rule-cms-0057-f