Legislation Enacts Prior Authorization Bill Following Governor's Silence
Premera Blue Cross Commits to Prior Authorization Improvements
In a significant move towards enhancing the healthcare experience, Premera Blue Cross Blue Shield of Alaska has announced improvements to their prior authorization process. The insurer, which serves approximately 163,000 members in the state, is aiming to provide near real-time responses for at least 80 percent of electronic prior authorization requests by 2027.
This commitment is part of a broader, voluntary initiative by Blue Cross Blue Shield companies across the nation. The improvements announced by Premera Blue Cross are not mandated by Senate Bill 133, but are being implemented independently.
SB133, which passed the Alaska Senate in May 2025 with no votes against it, and the Alaska House of Representatives the following week, aims to streamline the prior authorization process for healthcare providers and patients. The bill passed into law without Governor Mike Dunleavy's signature on July 15, 2025.
The bill includes time frames for approvals and directions for adverse determinations or insufficient information. It also sets a length of time that a prior authorization may be granted for a chronic condition. All prior authorization requests that can't be automatically approved will be reviewed by licensed, qualified clinicians guided by national best practices.
Stakeholders came together to craft provisions of SB133, with the Alaska Hospital and Healthcare Association expressing support for the bill. The association cited time-consuming appeals, endless paperwork, lack of consistency, transparency, and needless interruptions to treatment as issues that the bill addresses.
Premera Blue Cross announced these improvements in late June 2025, joining another major insurer in taking steps to streamline the prior authorization process even as SB133 was pending on the governor's desk. Policyholders will receive information about what's needed for prior authorization, next steps, and how to appeal if necessary.
As for the timeline for the insurer's improvements to be implemented beyond 2027, no information has been provided as of yet. However, with Premera Blue Cross Blue Shield of Alaska leading the way in creating a more efficient, affordable, and sustainable system, it's clear that progress is being made towards a better healthcare experience for all Alaskans.
