Legislature sends governor bill with new rules for insurance company prior authorizations

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March 6th, 2026 by Ric Hanson

(Radio Iowa) – The Iowa House and Senate have unanimously approved a bill that sets some state rules for prior authorization — the process insurance companies and government-run insurance programs use before approving a patient’s medical treatment. It sets new timelines for prior authorization decisions. It also says a patient’s doctor appealing denial of treatment or medication for a patient must talk to an insurance company representative who’s an expert in the same area of medicine. Representative Austin Harris, a Republican from Moulton, notes the bill also makes changes that should speed up the process of state approval of health care facility construction.

“It is probably one of the most impactful pieces of legislation that will get down to the governor this year,” Harris said. “It is going to make sure that we expand services and provide quicker care for the people of Iowa.” Senator Kara Warme, a Republican from Ames, says the new prior authorization guidelines are likely to decrease the amount of time doctors spend talking to insurance companies. “We want time for our limited professionals to be in patient care with Iowans,” Warme said.

The bill also makes it illegal for insurance companies to use Artificial Intelligence to authorize or deny medical treatment.