American Medical Association: Physicians Report Prior Authorization Hurts Workforce Productivity
Health insurance companies tout prior authorization for certain medical procedures, treatments, or drugs as a cost-saving measure, but insurer-imposed approval processes that go too far are no bargain for employers. Prior authorization requirements on evidence-based care can have severe consequences that interfere with a healthy, productive workforce, according to new survey results issued today by the
"Health insurance companies entice employers with claims that prior authorization requirements keep health care costs in check, but often these promises obscure the full consequences on an employer's bottom line or employees' well-being," said AMA President
According to the AMA survey, more than half (51%) of physicians who care for patients in the workforce reported that prior authorization had interfered with a patient's job responsibilities. In fact, more than one-third (34%) of physicians reported that prior authorization led to a serious adverse event, such as hospitalization, disability, or even death, for a patient in their care. Also, more than nine in 10 physicians (93%) reported care delays while waiting for health insurers to authorize necessary care, and more than four in five physicians (82%) said patients abandon treatment due to authorization struggles with health insurers.
The findings of the AMA survey illustrate a critical need to streamline prior authorization requirements to minimize delays or disruptions in care delivery. Health plans agreed to make a series of improvements (https://www.ama-assn.org/sites/ama-assn.org/files/corp/media-browser/public/arc-public/prior-authorization-consensus-statement.pdf) to the prior authorization process several years ago, but despite harmful consequences of delayed or disrupted care, most health plans are not making meaningful progress on reforms.
"Now is the time for employers to demand transparency from health plans on the growing impact of prior authorization programs on the health of their workforce," said
To help employers--the nation's largest purchasers of health insurance--choose the right health plan to provide coverage for their workforce, the AMA offers the following recommendations:
* Ask health insurance plans questions during the next benefit contracting season. The AMA offers employers a list of questions (https://fixpriorauth.org/sites/default/files/2021-08/PriorAuth-EmployerFAQ.pdf) to ask health plans about how their prior authorization requirements may impact employees.
* Solicit feedback from employees about their experience with prior authorization. The AMA encourages employers to use a benefit satisfaction survey, anonymous HR complaint line, or open engagement with HR representatives.
* Take action by visiting FixPriorAuth.org to learn more. Employers can submit stories and sign the AMA's reform petition.
The AMA continues to work on every front to streamline prior authorization. Through our research, collaborations, advocacy and leadership, the AMA is working to right-size prior authorization programs so that physicians can focus on patients rather than paperwork. Patients, physicians, and employers can learn more about reform efforts and share their personal experiences with prior authorization at FixPriorAuth.org.
* * *
REPORT link: https://www.ama-assn.org/system/files/prior-authorization-survey.pdf



Gov. Baker’s Budget Plan Would Expand Medicare In Massachusetts
What Drivers Should Do If They Discover A Car Insurance Lapse
Advisor News
- Worker retirement confidence dips to lowest level in a decade
- What’s behind private equity investment in insurance brokerages
- Advisors get a win as NJ Senate passes independent contractor bill
- Why federal retirement benefits are more complex than advisors realize
- Why timing the market is still a retirement mistake and what to do instead
More Advisor NewsAnnuity News
- Best’s Special Report: U.S. Life/Annuity Industry Sees Bottom-Line Growth Despite 18% Decline in Total Income in First-Quarter 2026
- Globe Life Inc. (NYSE: GL) Records 52-Week High Thursday Morning
- Fortitude Re Completes $500 Million FABN Issuance
- Reframing retirement income for greater certainty
- Jackson Introduces Dow Jones Industrial Average Index Option, Flexible Premiums, Six-Year Rate Guarantee in Latest Registered Index-Linked Annuity Launch
More Annuity NewsHealth/Employee Benefits News
- Findings from Brown University Provides New Data on Managed Care (Low-Value Care Following Hospital and Private Equity Acquisition in Primary Care): Managed Care
- Reports from University of Chicago Medicine Advance Knowledge in HIV/AIDS (A Community Located Insurance Navigation Intervention to Link Sexual and Gender Minorities in Status Neutral Care: Results From the Navigating Insurance Coverage …): Immune System Diseases and Conditions – HIV/AIDS
- New Insurance Findings from Johns Hopkins University Outlined (Medicare coverage choice is not neutral: how policy design shapes beneficiary enrollment): Insurance
- Collinsville man, St. Louis woman charged in Illinois health fraud case
- Governor vetoes changes to health-care risk pool oversight
More Health/Employee Benefits NewsLife Insurance News
- Researchers from Georgia Institute of Technology Report on Findings in Insurance (Black Life Insurance Companies, Mortgages, and African American Homeownership Before 1964): Insurance
- How much money do Connecticut residents need to retire comfortably?
- Earl Dudley Jr. to Become Chief Human Resources Officer at Mutual of Omaha
- How accelerated underwriting is transforming life insurance
- OVER $107 MILLION IN LIFE INSURANCE BENEFITS LOCATED FOR TENNESSEANS IN 2025 THROUGH NAIC'S LIFE INSURANCE POLICY LOCATOR SERVICE
More Life Insurance News