News Report | April 11, 2023
Physicians Say Costs & Harms Of Prior Authorization Exceed Alleged Benefits
Physicians providing direct care to consumers reported that insurer prior authorization (PA) requirements as of the end of December 2022 led to higher health care utilization and less effective care for consumers. Health insurers use PAs to manage utilization and ensure that consumers receive the most effective care for the lowest cost. However, physicians reported that PA led to higher overall utilization of health care services, resulting in unnecessary waste rather than cost-savings.
A survey of 1,001 physician members of the American Medical Association (AMA) revealed the following adverse outcomes and additional costs due to PA requirements.
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