The call for streamlined prior authorization and utilization management reform has been growing louder and more intense, so why has there been little movement? Aside from the resistance of insurance payers who stand by their process, there are physical and technical challenges precluding the complete automation of the prior authorization workflow.
The bottom line is that total electronic processing, including artificial intelligence (AI) and machine learning capabilities, is an incomplete answer. There needs to be an augmented intelligence solution that marries machine automation and human intellect to realize the goal of efficient prior authorizations fully.
“Artificial Intelligence constitutes a host of computational methods
that produce systems that perform tasks normally requiring
human intelligence. However, in healthcare, a more appropriate term is
‘augmented intelligence,’ reflecting the enhanced capabilities of human clinical
decision-making when coupled with these computational methods and systems.”
-American Medical Association
Calls for Change
In early 2018, healthcare stakeholders took a more proactive stance in pressuring the Centers for Medicare and Medicaid Services (CMS) and commercial insurance payers to overhaul the prior authorization process. The efforts have picked up steam in light of the COVID-19 public health emergency. The American Medical Association, joined by 16 other groups, participated in a joint task force with the sole purpose of developing reform principles to guide a streamlined prior authorization process and reduce friction.
While the original intention set by utilization review and prior authorizations was a good one, the mechanics of administering them has created a cumbersome and unnecessarily awkward process with frequent denials and patient care issues. The recently released 2019 AMA Prior Authorization Physician Survey notes that almost 90% of physicians report that patient care is negatively affected and often results in delays in patient care and abandonment.
Current Prior Authorization Process: Manual vs. Automated
According to the 2019 CAQH Index on Conducting Electronic Business Transactions, 87% of medical practices use a manual system to manage prior authorizations at a system-wide cost of $14.24 per prior authorization. Add to that the unworked claims denials experienced from missing or rejected prior authorizations, and the costs are astronomical.
Now compare that to the savings and efficiencies available through an automated system, and prior authorizations become much more palatable and manageable to gauge quality and appropriateness of care. On a system-wide basis, automated prior authorizations, using augmented intelligence, would achieve the originally intended consequences and improve the patient’s experience and the practice’s bottom-line.
5 Challenges Preventing System-Wide Adoption
In August 2020, CMS announced the Adopted Standards and Operating Rules where HIPAA required HHS to establish national standards for electronic transactions, defining the adopted standard for prior authorizations as ASC X12N 278 Version 5010 (Phase V of the CAQH CORE findings as the HHS-designated Operating Rule Author).
While this is a significant step, there remains five industry-wide challenges to fully automated prior authorizations, as outlined in the CAQH CORE’s report entitled “Moving Forward: Building Momentum for End-to-End Automation of the Prior Authorization Process.”
1. Lack of Data Consistency Throughout the Industry
There is a lack of uniformity between insurance payers in the coding used to communicate status, errors, and next steps. Requirements differ amongst plans and create confusion for providers trying to submit critical information in their requests. In turn, this has been a challenge for automation developers, as they try to match intent with payer requirements.
2. Lack of Mandated Standards for Clinical Documentation and Other Required Attachments
From payer to payer, there is a shortfall of standardization and uniformity across plans for attachments and clinical documentation resulting from individual payer proclivities. Vendors have found it difficult to create solutions that support HIPAA’s electronic standard for prior authorizations, thereby resulting in numerous side steps to reach compliance.
3. Lack of Clinical and Administrative System Integration
Historically, there has been a lack of integration between EHR/EMR and practice management systems, creating barriers to providing an automated prior authorization solution.
4. Lack of Consistency in State Requirements
Legislatively, several states have mandated that insurance payers notify providers by phone or USPS mail when there are outliers, such as complex prior authorization approvals and rejections. For instance, in Minnesota, payers must contact providers when a prior authorization is not approved. In Colorado and Rhode Island, providers can speak directly to a qualified medical representative when there is an adverse determination.
5. Lack of Provider Awareness
Providers are unaware that HIPAA requires health plans to offer the 5010X217 278 Request and Response solution for prior authorizations. While, as stated above, CMS is actively spreading the word about the requirement from HIPAA compelling health plans to accommodate the technology, it will take a proactive push from provider organizations to fully engage their constituency and demand compliance.
So, What’s the Solution? A Shifting Paradigm
Prior authorizations are the least automated function in healthcare with providers relying on manual systems and antiquated processes. However, technology alone cannot meet all of the requirements necessary to handle the entire prior authorization workflow effectively. Even in a perfect digital world, there are outlying requests, complex queries, and emergency needs.
Using Infinx’s augmented intelligence prior authorization service solution is an example of what technology combined with human intellect can accomplish in the healthcare business operations field.
Relying on an automated AI-driven software solution supported by experienced specialists ready to handle emergent or complex prior authorizations, providers can process prior authorization in near real-time, with follow-up monitored 24/7. Patient scheduling can occur almost immediately in most cases with less case abandonment, resulting in a better patient experience.
How augmented intelligence elevates the overall discussion:
- Accelerate current employee throughput to a higher level
- Augment decision making in the process
- Reduce manual processing costs and risks
- Increase consistency of output
- Continuous self-learning processes
Due to the pandemic, providers are finding themselves with financial and care-related challenges. By taking advantage of advanced technology coupled with human intelligence, we are entering a new phase of proactive revenue generation and collection less reliant on slow antiquated systems and payer limitations, and more on resilience and purposefulness.
Contact us to learn more about our Prior Authorization Software solution that provides you with complete end-to-end prior authorization coverage.