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Committee hears mixed views on prior authorization changes, a $25,000 'high‑dollar' threshold and a 1332 reinsurance authorization

Legislative Health Policy Committee · January 29, 2026
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Summary

Witnesses and regulators debated changes to utilization management — including a $25,000 numeric definition for 'high‑dollar' claims and narrowing of primary‑care prior‑authorization exemptions — and authorized agencies to apply for a Section 1332 reinsurance waiver to potentially lower premiums with federal pass‑through funding.

Lawmakers considered several utilization‑management changes and a reinsurance authorization at Thursday’s hearing, with insurers, providers and state officials outlining tradeoffs between controlling costs, reducing administrative burdens and protecting insurers’ solvency.

On 'high‑dollar' claims, the bill replaces an undefined standard by allowing targeted prepayment coding validation edit review for claims exceeding $25,000 per episode of care. Jen Carvey explained the numeric threshold was chosen to provide transparency and a bright line; committee members asked about whether the fixed amount should be inflation‑adjusted. Carvey…

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