Billing Beat

California Lawmakers Pass Prior Authorization Reform, Sending Bills to Governor’s Desk

September 16, 2025

Sponsored by the California Medical Association (CMA), recently passed bills (California AB 512 and SB 306) would significantly reform the prior authorization process by shortening insurer response times and eliminating the requirement for routinely approved medical services. The bills’ impact on providers would be a notable reduction in administrative burdens, allowing them to spend less time on paperwork and more time on patient care. Additionally, providers could see fewer delays in getting patients the treatment they need, as prior authorization would be waived for services that are approved at least 90% of the time. These changes are intended to streamline the healthcare system for providers while improving timely patient access to care. As of September 15, 2-25, the bills await signature by California governor Gavin Newsom.

Source: https://www.cmadocs.org/newsroom/news/view/ArticleId/50979/CMA-sponsored-prior-authorization-reform-bills-head-to-Governor-s-Desk

Laboratory Hospital Ancillary Services Prior Authorization California Medical Association (CMA)

Sign up for Billing Beat