Alaska Enacts SB 133 to Expedite and Enhance Health Insurance Prior Authorizations

Alaska has enacted Senate Bill 133, setting new deadlines and transparency standards for health insurance medical authorizations, effective January 1, 2027. Sponsored by Sen. Jesse Bjorkman and Rep. Justin Ruffridge, the legislation mandates insurers to approve or deny care requests within 72 hours, with any request unanswered by the deadline automatically considered approved. It also requires insurers to provide clear explanations for their decisions and timelines for requesting additional information, enhancing regulatory oversight and consumer protections.

The law introduces extended approval terms for patients with chronic conditions and includes specific provisions protecting patients with Stage 4 advanced metastatic cancer, ensuring coverage for drugs recommended by their healthcare providers. Additionally, measures are in place to secure private health information amid the authorization process. The state’s Division of Insurance will provide annual reports monitoring insurer responsiveness under the new standards.

This legislation reflects an increased regulatory focus on streamlining prior authorization to reduce delays in accessing care, a persistent issue across U.S. healthcare systems that affects payer and provider operations. The Alaska Hospital and Healthcare Association supported the bill, signaling alignment between healthcare providers and insurers on improving authorization efficiency and transparency.

Overall, Senate Bill 133 sets a structured timeline and accountability framework for the authorization process, addressing compliance and operational challenges in health plan administration. The law is anticipated to impact insurer workflows, provider coordination, and patient experiences, with potential ripple effects in regulatory compliance and market practices beyond Alaska.

This regulatory update highlights the evolving landscape of healthcare insurance authorizations and may inform similar legislative initiatives in other states targeting prior authorization reform.