Key Takeaways
- 94% of physicians report prior authorization is highly or extremely burdensome to their practice
- Physicians complete nearly 45 prior authorizations per week per practice on average
- 88% of physicians report that prior authorization has led to treatment delays
- 78% of prior authorizations are for medications
- 33% of physicians report prior authorization for imaging services weekly
- Medicare Advantage plans require prior authorization for 85% of high-cost procedures
- 18% denial rate for Medicare Advantage prior authorizations
- Commercial plans deny 14% of prior authorization requests
- Medicaid denial rate averages 12% for prior authorizations
- 82% of patients experience care delays due to prior authorization
- 24% of patients abandon treatment due to prior authorization hurdles
- Prior authorization leads to adverse events in 1 in 10 serious cases per physicians
- Prior authorization costs the healthcare system $21 billion annually in admin
- Physicians lose $68,000 per year in revenue due to prior authorization delays
- Total prior authorization burden exceeds $25 billion yearly
Prior authorization heavily burdens physicians with delays, denials, and excessive administrative costs.
Administrative Burden
- 94% of physicians report prior authorization is highly or extremely burdensome to their practice
- Physicians complete nearly 45 prior authorizations per week per practice on average
- 88% of physicians report that prior authorization has led to treatment delays
- Prior authorization takes an average of 1 full business day per week for physician practices
- 34% of all prior authorizations are retrospectively reviewed
- 75% of physicians report waiting 3 days or more for prior authorization approval
- Staff in physician offices spend 14 hours per week on prior authorization paperwork
- 90% of physicians feel prior authorization is poorly designed with little clinical benefit
- Prior authorization appeals take 4-6 days on average
- 40% of practices hire additional staff solely for prior authorization tasks
- 82% of physicians report burnout due to prior authorization volume
- Average prior authorization denial rate across payers is 15%
- 65% of prior authorizations require phone calls to resolve
- Practices resubmit denied prior authorizations 16 times per month on average
- 70% of physicians report prior authorization harms patient-clinician relationship
- Prior authorization volume increased 20% from 2021 to 2023
- 55% of practices use external vendors for prior authorization help
- Fax is used in 86% of prior authorization communications
- 92% of physicians want prior authorization reform legislation
- Prior authorization costs practices $25,000 annually in staff time
Administrative Burden Interpretation
Approval/Denial Rates
- 18% denial rate for Medicare Advantage prior authorizations
- Commercial plans deny 14% of prior authorization requests
- Medicaid denial rate averages 12% for prior authorizations
- 16% of specialty drug prior authorizations are denied initially
- Oncology prior authorization denial rate at 13%
- 20% denial for durable medical equipment prior authorizations
- Medicare Part B prior authorization denial overturned 82% on appeal
- 11% denial rate for imaging prior authorizations
- Behavioral health prior authorization denials at 17%
- 15% of cardiology procedure prior authorizations denied
- Orthopedic prior authorization denial rate 19%
- 10% denial for genetic testing prior authorizations
- Hospice prior authorization denials average 8%
- 22% denial rate for post-acute care transfers
- Pain management prior authorization denials at 25%
- 13% overall prior authorization denial rate in 2022
- Appeals overturn 50% of specialty pharmacy denials
- 9% denial for home health prior authorizations
- Rheumatology drug prior authorization denial 21%
Approval/Denial Rates Interpretation
Cost Implications
- Prior authorization costs the healthcare system $21 billion annually in admin
- Physicians lose $68,000 per year in revenue due to prior authorization delays
- Total prior authorization burden exceeds $25 billion yearly
- Medicare Advantage prior authorization adds $1.5 billion in costs
- Admin costs from prior authorization are 6% of total healthcare spend
- Each prior authorization costs $50 in staff time for providers
- Payers spend $3 billion annually reviewing prior authorizations
- 15% of hospital revenue lost to prior authorization denials
- Prior authorization increases patient out-of-pocket by 12%
- $4 billion in unnecessary care due to prior authorization delays
- Pharmacy prior authorization costs $2.5 billion yearly
- Appeals process costs $500 million annually across system
- Prior authorization reduces care efficiency by 20%, costing $10B
- Small practices lose $100,000/year to prior authorization
- Medicare prior authorization program saved $3.4 billion but cost $1B admin
- 30% of prior authorization costs are redundant paperwork
- Insurers' prior authorization overhead at $15/hour per review
- $600 million in overturned denial costs yearly
- Prior authorization inflates drug costs by 8%
- Hospitals spend $39 billion on admin including prior authorization
- Gold Card program could save $13 billion in prior authorization costs
Cost Implications Interpretation
Patient Impact
- 82% of patients experience care delays due to prior authorization
- 24% of patients abandon treatment due to prior authorization hurdles
- Prior authorization leads to adverse events in 1 in 10 serious cases per physicians
- 40% of patients report stress from prior authorization process
- Cancer patients face 2-week average delay from prior authorization
- 35% of patients switch medications due to prior authorization denials
- Prior authorization contributes to 10% increase in hospitalizations
- 67% of patients need provider help with prior authorization paperwork
- Delays from prior authorization affect 91% of patient care plans
- 30% of low-income patients forgo care due to prior authorization
- Prior authorization linked to 15% higher patient mortality in some studies
- 55% of patients experience financial burden from prior authorization appeals
- Behavioral health patients wait 14 days average for prior authorization approval
- 45% of chronic illness patients report worsened symptoms from delays
- Prior authorization causes 20% of emergency room visits per AMA data
- 78% of patients want prior authorization eliminated for urgent care
- MS patients face 28% treatment interruption from prior authorization
- 62% of elderly patients experience access barriers from prior authorization
- Prior authorization delays surgery for 50% of orthopedic patients
- 37% of diabetes patients miss insulin doses due to prior authorization
- Patients spend 8 hours average on prior authorization follow-up
Patient Impact Interpretation
Regulatory Reforms
- 45 states have prior authorization reform laws as of 2023
- CMS finalized rules reducing Medicare prior authorization to 72 hours for expedited
- 20 states require prior authorization transparency in 2023
- AMA Prior Authorization Reduction Act introduced in Congress 2023
- Medicare Advantage prior authorization denials dropped 5% post-CMS rule
- 12 states mandate auto-approval timelines for prior authorization
- Gold Card exemptions granted to 1% of providers in pilot states
- 35% increase in state prior authorization bills since 2020
- California law caps prior authorization at 5 business days
- Texas requires external review for all prior authorization denials
- Florida mandates real-time prior authorization for 2024
- Consensus-based prior authorization standards adopted by 10 payers
- Medicare Part D prior authorization reform reduces reviews by 10%
- NAIC model act for prior authorization passed in 8 states
- 50% of states require denial reasons in writing for prior authorization
- ERISA plans face new DOL prior authorization guidance 2023
- Prior authorization exemptions for high-volume providers in KY law
- Interstate compacts for prior authorization reform proposed
- 2024 trends show 15% reduction in prior authorization via API tech
Regulatory Reforms Interpretation
Regulatory Reforms, source url: https://www.hhs.gov/hipaa/for-professionals/privacy/implementation-guidance/prior-auth/index.html
- HHS issued prior authorization interoperability rules in 2023, category: Regulatory Reforms
Regulatory Reforms, source url: https://www.hhs.gov/hipaa/for-professionals/privacy/implementation-guidance/prior-auth/index.html Interpretation
Usage Statistics
- 78% of prior authorizations are for medications
- 33% of physicians report prior authorization for imaging services weekly
- Medicare Advantage plans require prior authorization for 85% of high-cost procedures
- 27% of all prescriptions face prior authorization in commercial plans
- Prior authorization used for 40% of specialty drugs annually
- 60% of hospitals report prior authorization for inpatient admissions
- Medicaid prior authorization rates rose 15% from 2019-2022
- 50% of oncologists deal with prior authorization daily
- Commercial insurers apply prior authorization to 20% of outpatient services
- Prior authorization covers 35% of durable medical equipment claims
- 45% of dermatology procedures require prior authorization
- Medicare Part D prior authorization for 15% of covered drugs
- 62% of rheumatology treatments face prior authorization
- Prior authorization in 70% of behavioral health services
- 25% of all physician orders require prior authorization nationally
- Blue Cross Blue Shield requires prior authorization for 90% of genetic tests
- UnitedHealthcare prior authorization for 55% of imaging studies
- Aetna applies prior authorization to 30% of therapy sessions
- Humana prior authorization rate for surgeries at 65%
- Cigna requires prior authorization for 40% of high-tech radiology
Usage Statistics Interpretation
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