The Prior Auth Impact Meter

By Dr. Steve Kim, Valer Co-Founder and CEO

What people are saying about fixing prior auth—and what will actually make a difference

No healthcare stakeholder believes Prior Authorization (PA) is working well. Providers face a labyrinth of payer-specific portals, non-standard submission forms, and unpredictable turnaround times for decisions. Payers face an uphill battle to implement new APIs and reporting standards, without guarantee that providers will be ready to take advantage of them. Most importantly, patients are suffering from adjudication delays and coverage denials. 

Amidst this mess, we hear every day about a new proposed “solution” that will fix PA—from the CMS-0057 Prior Authorization and Interoperability Final Rule that is right around the corner to proclamations that AI will make the whole process seamless. 

Provider organizations have enough on their plate without trying to research all of the PA updates and regulations that are swirling around the industry right now. We’re here to help decode all of these proposed fixes so that provider organizations know what is signal versus noise.

 

What is the proposed fix?
What will actually change?
Valer Impact Meter
Turnaround Time regulation for payers in CMS-0057

Starting January 1, 2026, payers will have to provide PA decisions within 72 hours for expedited requests and 7 calendar days for standard requests.

But given the patchwork state-by-state regulation that already exists, there’s likely to be a lot of payer confusion as to which standards apply. CMS-0057-F also only applies to Medicare Advantage, Medicaid, CHIP, and Qualified Health Plans on the Federally Facilitated Exchanges.

More transparent reporting requirements for Turnaround Times in CMS-0057

Starting January 1, 2026, payers will have to publicly report the average TAT for PA decisions.

But an average TAT report won’t provide speciality or procedure-level data—and that detail is what matters for providers who want to schedule complex, high-cost services.

More transparent reporting requirements for approvals and denials in CMS-0057

Starting January 1, 2026, payers will have to publicly report the percentage of PA requests approved and denied—and the reasons for those denials.

A standard set of denial reason codes will make PA more transparent and predictable—a good thing for providers and patients.

FHIR-based APIs that payers will have to implement because of CMS-0057

Starting January 1, 2027, payers will have to implement APIs that:

  • Identify whether PA is required for specific items and services (excluding drugs)
  • Submit PA requests electronically
  • Receive decisions and reasons for denials electronically

Payers need to build out individual EMR endpoints to make the APIs workable, and as of Spring 2025, only 43% of them have started working on this. They will likely still rely on web portals and legacy fax workflows for years to come.

Heard of a prior auth fix that you don’t see here or have further questions? Submit it here and we’ll update our tracker to share what impact we believe it will have.

Ultimately, provider organizations who want a more streamlined, effective PA process shouldn’t settle for the relatively small impact of some of these regulations and technologies. Contact us today to learn more about how automation and transparent reporting can make a meaningful difference for your organization. 

You May Also Like…

CMS-0057-F Prior Authorization and Interoperability Final Rule: What Providers Need to Know

As part of our mission to simplify and speed prior authorization submissions, we are closely tracking the regulatory landscape to understand how changes will affect providers. After much uncertainty and many piecemeal regulatory updates, we are on the cusp of a larger shift with CMS-0057-F, which attempts to standardize prior auth processes and increase transparency about payer ruling patterns.

read more

How Healthcare Organizations Can Navigate the Top 3 Prior Auth Blind Spots

Prior authorization is time consuming, complex, and expensive—at best. On average, one prior authorization, alone, takes 22 minutes to complete and costs provider organizations nearly $11. At worst, prior authorization is a hazard. It can impede delivery of timely and potentially life-saving patient care, limit protocol and care journey options, and contribute to burnout for clinical and administrative staff. It also compromises the financial health of provider organizations.

read more