Policy Details

SB2280 – Prior Authorization Reform Act

Date Passed

4/24/2025

Effective Date

1/1/2026

Summary

Overhauls prior authorization in health insurance: sets standards and timelines, requires reporting to the Insurance Commissioner, and strengthens appeals. If deadlines are missed, requests can be deemed authorized; directs studies on secure electronic submission via health records.

Healthcare Implications

Bars automated systems from issuing adverse determinations without a licensed physician; strengthens human oversight and patient protections. Payers may still use AI for intake/screening, but workflows must ensure clinical judgment, auditability, and timely responses. Electronic prior auth pushes Electronic Health Record integration and may reshape how AI prepares medical‑necessity evidence.

Impact Level

Medium

Stakeholders

Patients & Public; Regulators & Government