Health insurance companies say they'll make things simpler

Several large health insurers said Monday that they will streamline a controversial process that critics have argued led to delays in medical treatments.

The so-called prior authorization practice compels health providers to get a green light from insurers before administering medical care. The process drew increased scrutiny in the wake of the murder of UnitedHealthcare executive Brian Thompson last year.

Now, a collection of large insurers including Humana, Cigna, UnitedHealthcare, and Blue Cross Blue Shield are pledging to cut red tape and shrink the burden of prior authorization on patients. They're aiming to complete the reforms over the next year and a half.

"Health plans are making voluntary commitments to deliver a more seamless patient experience and enable providers to focus on patient care, while also helping to modernize the system,” Mike Tuffin, the president and CEO of the trade group AHIP, formerly America's Health Insurance Plans, said in a statement.

The prior authorization changes include standardizing electronic submissions and reducing the scope of insurance claims subject to the process. Many doctors and hospitals still forgo electronic submissions in favor of paper.

Insurers also agreed to establish a smoother transition process so patients switching healthcare plans during treatment can still receive that treatment for at least three months.

The reforms will benefit 257 million Americans across insurance markets, including those on Medicaid and Medicare Advantage, AHIP said.