Health insurance legislation signed into law by Iowa Gov. Kim Reynolds

Changes to what is required when healthcare providers and health insurance companies interact when serving a patient were signed into law Wednesday by Gov. Kim Reynolds, according to the Iowa Medical Society.

Reynolds signed the bill at Monroe County Hospital and Clinics in Albia, according to the Iowa Medical Society, a statewide organization that advocates on behalf of Iowa doctors.

The group praised the new law, which was approved unanimously by the Iowa Legislature.

"This law addresses a high priority for physicians across Iowa — fewer barriers to care and decisions grounded in clinical expertise," Iowa Medical Society President Dr. Lillian Erdahl said in a press release. "By addressing prior authorization challenges and strengthening accountability for insurers, we help ensure patients receive timely, appropriate care."

Much of House File 2635 is built around prior authorization — a requirement that doctors check with a patient's insurance company before conducting a procedure or dispensing medication.

The new law prohibits health insurance companies from using artificial intelligence to determine whether to deny a prior authorization request, exempts recommended cancer screenings from prior authorization requirements, and prevents insurance companies from penalizing doctors who refer patients to out-of-network providers.

The legislation passed the Iowa Senate, 44-0, and the Iowa House, 87-0. It was supported by many healthcare organizations and opposed only by health insurers, according to state lobbying records.