Nebraska committee hears testimony for LB77 to standardize prior authorization, limit AI-only denials

Summary

Supporters including hospitals, physicians and patient advocates told the Banking, Commerce and Insurance Committee that prior authorization delays care and increases costs. LB77 would require clearer criteria, standardized forms, timeline limits, and prohibit AI-only denials; insurers warned of implementation complexity and asked to negotiate.

The Banking, Commerce and Insurance Committee heard more than two hours of testimony on LB77, the Ensuring Transparency and Prior Authorization Act, a bill introduced by Senator Elliot Bostar proposing statewide standards for health-plan prior authorization procedures.

Supporters called the current prior authorization system a widespread and growing barrier to timely care. "Prior authorization requirements create substantial challenges for patients and providers," Senator Elliot Bostar said when he opened the hearing, summarizing the bill's goals to require accessible criteria, standardized forms and limits on automated denials.

The bill's proponents included hospital leaders, specialty physicians and provider groups who described delays that they said prolong hospital stays and slow start of critical treatments. "When a child is unable to admit to our facility in a timely manner, it can mean another crisis event affecting the safety of the child…

Nebraska committee hears testimony for LB77 to standardize prior authorization, limit AI-only denials

Summary

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