California enacts law to streamline prior authorization in health care

Dustin Corcoran, Chief Executive Officer at California Medical Association
Dustin Corcoran, Chief Executive Officer at California Medical Association
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Governor Gavin Newsom has signed Senate Bill 306 into law, a measure sponsored by the California Medical Association (CMA) that aims to reform the prior authorization process in health care. The bill, authored by Senator Josh Becker, seeks to remove redundant approval steps and introduce transparency requirements for health plans.

Prior authorization is a system where physicians must get approval from health insurers before providing certain treatments. Critics have argued that this process causes delays and adds unnecessary administrative work for doctors and patients. SB 306 addresses these concerns by allowing regulators to waive prior authorization for services that are almost always approved. It also requires health plans to make data on their approval decisions publicly available.

CMA President Shannon Udovic-Constant, M.D., commented on the significance of the new law: “This law is a decisive step toward ending wasteful prior authorization practices that too often delay or deny patients the care they need,” said Udovic-Constant. “By cutting out redundant requirements and increasing accountability, SB 306 puts patients’ health above paperwork. We thank Governor Newsom for his leadership in signing this reform into law and ensuring that California moves closer to a health care system where medical decisions are driven by clinical expertise rather than bureaucracy.”

The legislation received strong bipartisan support in the Legislature, signaling widespread agreement on the need to streamline prior authorization for patient care and reduce paperwork for physicians.

SB 306 was included in CMA’s legislative priorities for 2025.



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