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Roughly three-quarters of the nation’s health insurance providers signed a series of new commitments this week aimed at improving patient care by reducing bureaucratic obstacles tied to prior-authorization requirements.
The voluntary pledge, announced Monday by Centers for Medicare and Medicaid Services Director Dr. Mehmet Oz and Health and Human Services Secretary Robert F. Kennedy Jr., includes insurers that cover about 75% of the U.S. population. The initiative focuses on speeding up and simplifying the prior-authorization process—an often-criticized system that has been blamed for delaying treatment and creating unnecessary barriers to care for patients.
“The pledge is not a mandate. It’s not a bill, a rule. This is not legislated. This is a opportunity for industry to show itself,” said Oz. “But by the fact that three-quarters of the patients in the country are already covered by participants in this pledge, it’s a good start and the response has been overwhelming.”
Prior authorization requires doctors to obtain insurer approval before providing certain treatments, intended to ensure that appropriate care is provided. However, Oz said the process has become a major burden, with physicians spending an average of 12 hours a week handling about 40 such requests. At Monday’s press conference, Oz said it frustrates doctors, delays care, and undermines trust in the healthcare system, calling it “something we can’t tolerate.”
Major insurers like United Healthcare, Cigna, Humana, Blue Cross & Blue Shield, and Aetna have signed the pledge to improve patient care by streamlining prior-authorization. While the move may reduce profits if patient care increases, the insurers are committed to creating standardized electronic submission processes to speed up approvals and reduce delays.
The new framework is set to be fully operational by Jan. 1, 2027. By Jan. 1, 2026, insurers must reduce their use of prior-authorization and honor existing approvals for 90 days when patients switch plans mid-treatment.
Transparency is also a key focus. Insurers will provide clear explanations of prior-authorization decisions and appeal instructions. By 2027, 80% of electronic prior-authorization requests are expected to be processed in real-time.
