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Committee advances bill to increase insurer transparency on preauthorization requests

February 19, 2025 | 2025 Utah Legislature, Utah Legislature, Utah Legislative Branch, Utah


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Committee advances bill to increase insurer transparency on preauthorization requests
Senator Johnson presented Senate Bill 274, Health Insurance Preauthorization Revisions, saying the measure would increase transparency about how often health insurers approve, deny or change preauthorization decisions and the average processing time.

"This bill actually is the result of a call that I got from my mayor," Johnson said, recounting a constituent case where a wheelchair request was denied and describing the bill as a modest transparency measure.

Nut graf: The bill drew support from hospitals, physicians and patient advocates who said better data is necessary to understand how preauthorization processes affect access to care. Insurers signaled willingness to negotiate the bill language; the sponsor asked for time to work on a substitute and the committee voted to move the bill forward with that commitment.

Stakeholders urged transparency but sought workable publication requirements. Mike Sontag of the American Property and Casualty Insurance Association and a hospital industry representative told the committee that stakeholders want public data but also practical, discoverable places to publish results. Mary Ann Martindale, CEO of the Utah Academy of Family Physicians, said the provider community lacks reliable information on preauthorization outcomes and supports collection of data so legislators and providers can assess the need for further changes.

Senator Johnson said he asked the bill's drafters to avoid heavy-handed regulatory steps and instead require basic reporting of annual percentages of authorized, denied, and appealed requests, along with average decision time and clear denial explanations to customers.

The sponsor committed to work with the Department of Insurance and insurers on substitute language addressing technical reporting details. The committee voted to advance SB 274 with that proviso; the transcript records the motion carried with a tally reported as 4–1, with one senator recorded as voting in opposition in the excerpt.

Ending: The bill moves forward for additional drafting and negotiation; the sponsor expects to circulate a substitute that incorporates stakeholder feedback before floor consideration.

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