The case for having insurance companies pay physicians for prior authorizations

Medical Economics April 19, 2024
Richard Payerchin

Economist discusses potential cost savings and fewer administrative burdens if U.S. health care had an automated clearinghouse.

An automated clearinghouse that standardizes and transfers health care information across the nation could be a way to streamline the prior authorization process that has become a drag on patient care.

But it’s not the only way.

Economist David M. Cutler, PhD, proposed creation of a pricing system for insurers and other payers to reimburse physicians for the work they do on prior authorizations. And while current technology would support a health care automated clearinghouse, there are more opportunities for automation as physicians and payers integrate artificial intelligence (AI) into the computerized exchange of information.

Cutler outlined a plan for a health care...

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