Insurance authorization bill becomes law

A bill sponsored by both Sen. Jesse Bjorkman and Rep. Justin Ruffridge, imposing new requirements for medical authorizations on health insurance, became law Tuesday.

A press release from the Alaska Senate Majority says that Senate Bill 133 was sponsored by Bjorkman, R-Nikiski, in the Senate and Ruffridge, R-Soldotna, in the House. The bill was passed May 18 and became law July 15, though without the signature of Gov. Mike Dunleavy. The law becomes effective on Jan. 1, 2027.

The bill, per the release, requires insurance companies and health care providers to meet new deadlines for authorizing requests for care and also calls for more information to be provided about decisions. It includes other requirements for safeguarding information and calls for longer terms for approvals for patients with a chronic health condition.

The bill requires insurance companies to decide on a request for care within 72 hours in most cases. The bill includes other provisions requiring insurers to explain their decisions and defines a timeline for an insurer to request additional information. A request left without a response by the deadline "is considered approved."

The bill also says specifically that patients with Stage 4 advanced metastatic cancer cannot be denied coverage for an approved drug recommended by their health care provider. It includes other provisions for protecting private health information and calls on the State Division of Insurance to annually report on how quickly approvals are happening.

"Alaskans should not have to fight with their insurance company to get the care they need," says Bjorkman in the release. "This bill makes the process quicker, clearer, and fairer for everyone."

Speaking in Kenai in June, Bjorkman described passage of the bill among his successes during this year's legislative session.

Bjorkman in the release says that the Alaska Hospital and Healthcare Association helped to drive the legislation. Shaun Keef, CEO of Central Peninsula Hospital, is also quoted in the release as saying that the law is a "major win" for patients that ensures "faster decision and greater transparency."

Ruffridge was reached by text Thursday but did not comment as of Saturday evening.

Reach reporter Jake Dye at jacob.dye@peninsulaclarion.com.