SENATE BILL NO. 133 "An Act relating to prior authorization requests for medical care covered by a health care insurer; relating to a prior authorization application programming interface; relating to step therapy; and providing for an effective date." 9:45:45 AM SENATOR JESSE BJORKMAN, SPONSOR, introduced the bill. The bill dealt with prior authorization and focused on the process before someone received medical care. He discussed long wait times prior to insurance approval for vital health care. He relayed that medical providers, hospitals, and insurance companies had met over the course of the previous interim and summer to streamline the prior authorization system. The bill established a timeframe for approvals, specific communication requirements, and deadlines. If insurance did not approve healthcare nor receive a response, it would default to care being provided. The bill encouraged the use of electronic data transmission through the insurer's website or portal, and the bill provided the director of insurance with the authority to monitor compliance and provide enforcement. He relayed that the director was available for questions. 9:48:14 AM JARED KOSIN, PRESIDENT AND CHIEF EXECUTIVE OFFICER, ALASKA HOSPITAL AND HEALTHCARE ASSOCIATION, commented in support of the bill. He strongly supported the bill, which sought the reform of the prior authorization process. He thought the current process was useful but flawed, in that it could lead to long delays. He recognized that the bill was a collaborative effort to improve thew process for patients. The bill would speed up the process from 5 working days to 72 hours and would provide long-term approvals for chronic conditions. He thought the bill was comprehensive and had many stakeholders in support. 9:49:54 AM GARY STRANNIGAN, PREMERA BLUE CROSS AND BLUE SHIELD OF ALASKA, EVERETT, WASHINGTON (via teleconference), relayed that Premera was a non-profit health plan that had been serving Alaskans since before statehood. He relayed that Premera felt that efforts to promote the affordability of its products was key to continuing to provide care. He discussed affordability restricting access to healthcare. He thought it was well-publicized that some carriers had been aggressive and using prior authorization for 20 percent of all claims, while Premera used it for 2 percent. He thought the bill would help providers modernize and streamline the process. He thought the bill would help incentivize the adoption of an electronic process. He thought the bill represented a set of reasonable compromises by all parties. Co-Chair Hoffman OPENED public testimony. Co-Chair Hoffman CLOSED public testimony. Senator Kiehl reviewed FN 1, a zero fiscal note from the Department of Commerce, Community and Economic Development. SB 133 was HEARD and HELD in committee for further consideration.