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Federal Policy·August 19, 2026
CMS Proposes Electronic Prior Authorization Incentives in Medicare Fee Schedule
CMS released a proposed rule on July 14, 2026, to incentivize electronic prior authorization through the Medicare Physician Fee Schedule for CY 2027. The proposal targets Medicare Ambulatory Specialty Models and the Merit-based Incentive Payment System, building on existing prior authorization requirements for health plans. The rule focuses on provider-side incentives rather than plan mandates. Comment periods and effective dates were not specified in the excerpt.
Why it matters
This proposal signals CMS intent to accelerate electronic prior authorization adoption on the provider side, which may influence state Medicaid agencies and managed care plans considering similar provider incentive structures.
Managed Care
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