Washington 2025-2026 Regular Session Status: Passed House Bipartisan · 4 D · 1 R cosponsors

HB 1566 — Making improvements to transparency and accountability in the prior authorization determination process.

Last action — By resolution, reintroduced and retained in present status.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill has passed the House. Introduced January 24, 2025. It now moves to the second chamber.

Next likely step: consideration and a floor vote in the Senate.

Odds of enactment

Moderate chance

Based on the sponsor, cosponsors, and committee posture, this bill has a moderate chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Advancing 52% · moderate confidence
  • Passed House

    Current position in the legislative process.

  • 5 sponsors

    1 primary, 4 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (4 D · 1 R) — cross-party backing.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

870 added · 909 removed

Plain-language change summary

The recent changes to Bill HB 1566 include additional requirements for insurers when notifying patients and providers about prior authorization decisions. Now, notifications must include a unique identifier for the reviewer of the decision, as well as detailed information about the physician in charge, including their qualifications and specialties. This amendment strengthens transparency and accountability in the prior authorization process, ensuring both patients and healthcare providers have clear information about who made the decision and their qualifications. Also, the process for peer-to-peer discussions has been clarified, requiring that the peer reviewer has relevant expertise and an unrestricted medical license, which aims to improve the fairness of adverse determinations.

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H-1472.2 SUBSTITUTE HOUSE BILL 1566 State of Washington 69th Legislature 2025 Regular Session By House Health Care & Wellness (originally sponsored by Representatives Rule, Marshall, Shavers, Pollet, and Kloba) READ FIRST TIME 02/21/25.
H-0754.1 HOUSE BILL 1566 State of Washington 69th Legislature 2025 Regular Session By Representatives Rule, Marshall, Shavers, Pollet, and Kloba Read first time 01/24/25.
Referred to Committee on Health Care & Wellness.
1 SHB 1566 necessary.
1 HB 1566 necessary.
2 SHB 1566 (i) For nonelectronic standard prior authorization requests, the carrier shall make a decision and notify the provider or facility of the results of the decision within five calendar days of submission of a nonelectronic prior authorization request by the provider or facility that contains the necessary information to make a determination.
2 HB 1566 (i) For nonelectronic standard prior authorization requests, the carrier shall make a decision and notify the provider or facility of the results of the decision within five calendar days of submission of a nonelectronic prior authorization request by the provider or facility that contains the necessary information to make a determination.
(((2))) (e) When denying a prior authorization determination, the carrier shall include the credentials, board certifications, and p.
(((2))) (e) When issuing a notification for a prior authorization determination, the carrier and any contracted health care benefit p.
3 SHB 1566 areas of specialty expertise and training of the provider who had clinical oversight over the determination in any notification sent to the health plan enrollee and provider requesting or referring the service.
3 HB 1566 manager shall include a unique identifier for the individual who initially reviewed and made the determination.
(2)(a) Carriers maintain the ability to make adjustments to policies and procedures that impact the applicability of their prior authorization requirements.
The carrier must also include the national provider identification number of the physician who had clinical oversight for the determination as well as the physician's credentials, board certifications, and areas of specialty expertise and training in any notification sent to the health plan enrollee and provider requesting or referring the service.
Except as provided in (b) of this subsection, beginning August 1, 2025, these adjustments can only be made quarterly and go into effect either January 1st, April 1st, July 1st, or October 1st of any given calendar year.
(f) In the case of an adverse benefit determination, a carrier shall make available to the requesting provider a peer-to-peer review discussion.
Notification of policy changes must be provided to all in-network providers at least 45 days prior to the quarterly update and must be available to providers in a single location on the carrier's website.
The peer reviewer provided by the carrier must possess a current and valid nonrestricted license to practice medicine in Washington state and must be knowledgeable of and have experience providing the same or similar service as the health care service under review, and must have authority to modify or overturn the care determination decision.
The notification must be provided independent of other policy changes or provider notification publications and be easily accessible in electronic provider and enrollee portals.
(2) Carriers maintain the ability to make adjustments to policies and procedures that impact the applicability of their prior authorization requirements.
(b) Adjustments to policies and procedures that impact the applicability of prior authorization requirements to reflect federal food and drug administration approvals, national comprehensive cancer network guidelines, United States preventive services task force guidelines, or state or national public health emergencies may be made at any time and shall be posted on the website referenced in (a) of this subsection.
Beginning August 1, 2025, these adjustments can only be made once annually and go into effect January 1st of any given calendar year.
Notification of adjustments made under this subsection must be provided to all in-network providers as soon as possible.
Notification of policy changes must be provided to all in-network providers at least four months prior to the January 1st effective date.
(3)(a) Only a licensed physician or a licensed health professional working within their scope of practice may deny a prior authorization request based on medical necessity.
The notification must be provided independent to other policy changes or provider notification publications and be easily accessible in electronic provider and enrollee portals.
(3)(a) A determination of medical necessity shall be made only by a licensed physician or a licensed health professional working within their scope of practice.
An artificial intelligence tool shall not be the sole means used to deny, delay, or modify health care services.
An artificial intelligence, algorithm, or related software tool shall not be the sole means used to deny, delay, or modify health care services.
Algorithms may be used to process and approve prior authorization requests, but may not be used without human review to deny care based on a determination of medical necessity.
(b) A carrier and any contracted health care benefit manager that uses an artificial intelligence, algorithm, or other software tool for the purpose of prior authorization or prior authorization functions, based in whole or in part on medical necessity, or that contracts with or otherwise works through an entity that uses an p.
(b) A carrier that uses an artificial intelligence tool for the purpose of prior authorization or prior authorization functions, p.
4 HB 1566 artificial intelligence, algorithm, or related software tool for the purpose of prior authorization or prior authorization functions, based in whole or in part on medical necessity, shall ensure all of the following:
4 SHB 1566 based in whole or in part on medical necessity, or that contracts with or otherwise works through an entity that uses an artificial intelligence tool for the purpose of prior authorization or prior authorization functions, based in whole or in part on medical necessity, shall ensure all of the following:
(i) The artificial intelligence, algorithm, or other software tool bases its determination on the following information, as applicable:
(i) The artificial intelligence tool bases its determination on the following information, as applicable:
(A) An enrollee's medical or other clinical history;
(A) An enrollee's medical or other clinical history, including demographic data;
(B) Individual clinical circumstances as presented by the requesting provider;
and (B) Individual clinical circumstances as presented by the requesting provider;
and (C) Other relevant clinical information contained in the enrollee's medical or other clinical record;
(ii) The artificial intelligence tool does not base its determination solely on a group data set;
(ii) The artificial intelligence, algorithm, or other software tool does not base its determination solely on a group data set;
(iii) The artificial intelligence tool's criteria and guidelines comply with this chapter and applicable state and federal law;
(iii) The artificial intelligence, algorithm, or other software tool's criteria and guidelines complies with this chapter and applicable state and federal law;
(iv) The use of the artificial intelligence tool does not discriminate, directly or indirectly, against an enrollee in violation of state or federal law;
(iv) The use of the artificial intelligence, algorithm, or other software tool does not discriminate, directly or indirectly, against an enrollee in violation of state or federal law;
(v) The artificial intelligence tool is fairly and equitably applied, including in accordance with any applicable regulations and guidance issued by the federal department of health and human services;
(v) The artificial intelligence, algorithm, or other software tool is fairly and equitably applied, including in accordance with any applicable regulations and guidance issued by the federal department of health and human services;
(vi) The policies and procedures for using the artificial intelligence tool are open to audit by the office of the insurance commissioner under chapter 48.37 RCW;
(vi) The policies and procedures for using the artificial intelligence, algorithm, or other software tool is open to audit by the office of the insurance commissioner;
(vii) The artificial intelligence tool's performance, use, and outcomes are periodically reviewed by the carrier to maximize accuracy and reliability;
(vii) The artificial intelligence, algorithm, or other software tool's performance, use, and outcomes are periodically reviewed to maximize accuracy and reliability;
(4)(a) Each carrier shall build and maintain a prior authorization application programming interface that automates the process for in-network providers to determine whether a prior authorization is required for health care services, identify prior authorization information and documentation requirements, and facilitate the exchange of prior authorization requests and determinations from its electronic health records or practice management system.
(4)(a) Each carrier shall build and maintain a prior authorization application programming interface that automates the process for in-network providers to determine whether a prior authorization is required for health care services, identify prior authorization information and documentation requirements, and facilitate the exchange of prior authorization requests and p.
The application programming interface must support p.
5 HB 1566 determinations from its electronic health records or practice management system.
5 SHB 1566 the exchange of prior authorization requests and determinations for health care services beginning January 1, 2025, and must:
The application programming interface must support the exchange of prior authorization requests and determinations for health care services beginning January 1, 2025, and must:
and (vi) Include the credentials, board certifications, and areas of specialty expertise and training of the provider who had clinical oversight over the determination in any notification sent to the health plan enrollee and provider requesting or referring the service.
and (vi) Include a unique identifier for the individual who initially reviewed and made the determination.
The carrier and any contracted health care benefit manager must also include the national provider identification number of the physician who had clinical oversight for the determination as well as the physician's credentials, board certifications, and areas of specialty expertise and training in any notification sent to the health plan enrollee and provider requesting or referring the service.
(ii) Facilitate the exchange of prior authorization requests and determinations from its electronic health records or practice management system, and may include the necessary data elements to populate the prior authorization requirements that are compliant with the federal health insurance portability and accountability act of p.
p.
6 SHB 1566 1996 or have an exception from the federal centers for medicare and medicaid services;
6 HB 1566 (ii) Facilitate the exchange of prior authorization requests and determinations from its electronic health records or practice management system, and may include the necessary data elements to populate the prior authorization requirements that are compliant with the federal health insurance portability and accountability act of 1996 or have an exception from the federal centers for medicare and medicaid services;
(e) By September 13, 2023, and at least every six months thereafter until September 13, 2026, the commissioner shall provide an update to the health care policy committees of the legislature on the development of rules and implementation guidance from the federal centers for medicare and medicaid services regarding the standards for development of application programming interfaces and interoperable electronic processes related to prior authorization functions.
(e) By September 13, 2023, and at least every six months thereafter until September 13, 2026, the commissioner shall provide an update to the health care policy committees of the legislature on p.
The updates should include recommendations, as p.
7 HB 1566 the development of rules and implementation guidance from the federal centers for medicare and medicaid services regarding the standards for development of application programming interfaces and interoperable electronic processes related to prior authorization functions.
7 SHB 1566 appropriate, on whether the status of the federal rule development aligns with the provisions of chapter 382, Laws of 2023.
The updates should include recommendations, as appropriate, on whether the status of the federal rule development aligns with the provisions of chapter 382, Laws of 2023.
(((4))) (6) This section applies to prior authorization functions carried out by health care benefit managers, as defined in RCW 48.200.020, under direct or indirect contract with a carrier.
(((4))) (6) For the purposes of this section:
(7) The commissioner may adopt any rules necessary to implement this section.
(a) "Artificial intelligence" means the use of machine learning and related technologies that use data to train statistical models for the purpose of enabling computer systems to perform tasks normally associated with human intelligence or perception, such as computer vision, speech or natural language processing, content generation, and forecasting future outcomes.
(8) For the purposes of this section:
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(a) "Artificial intelligence" means the use of machine learning and related technologies that use data to train statistical models for the purpose of enabling computer systems to perform tasks normally associated with human intelligence or perception, such as computer vision, speech or natural language processing, and content generation.
"Artificial intelligence" includes generative artificial intelligence.
p.
(((b))) (c) "Standard prior authorization request" means a request by a provider or facility for approval of a health care service or prescription drug where the request is made in advance of p.
8 SHB 1566 (((b))) (c) "Generative artificial intelligence" means an artificial intelligence system that generates novel data or content based on a foundation model.
8 HB 1566 the enrollee obtaining a health care service or prescription drug that is not required to be expedited.
(d) "Machine learning" means the process by which artificial intelligence is developed using data and algorithms to draw inferences therefrom to automatically adapt or improve its accuracy without explicit programming.
(e) "Standard prior authorization request" means a request by a provider or facility for approval of a health care service or prescription drug where the request is made in advance of the enrollee obtaining a health care service or prescription drug that is not required to be expedited.
(ii) For electronic expedited prior authorization requests, the managed care organization shall make a decision and notify the provider or facility of the results of the decision within one calendar day of submission of an electronic prior authorization request by the provider or facility that contains the necessary p.
(ii) For electronic expedited prior authorization requests, the managed care organization shall make a decision and notify the provider or facility of the results of the decision within one calendar day of submission of an electronic prior authorization request by the provider or facility that contains the necessary information to make a determination.
9 SHB 1566 information to make a determination.
(b) The managed care organization shall meet the following time frames for prior authorization determinations and notifications to a participating provider or facility that submits the prior authorization request through a process other than an electronic prior authorization process described in subsection (((2))) (5) of this section:
(b) The managed care organization shall meet the following time frames for prior authorization determinations and notifications to a participating provider or facility that submits the prior authorization request through a process other than an electronic p.
9 HB 1566 prior authorization process described in subsection (((2))) (6) of this section:
p.
(d) The prior authorization requirements of the managed care organization must be described in detail and written in easily understandable language.
10 SHB 1566 (d) The prior authorization requirements of the managed care organization must be described in detail and written in easily understandable language.
The clinical review criteria must be evidence-based criteria and must accommodate new and emerging information related to the appropriateness of clinical criteria with respect to black and indigenous people, other people of color, gender, and underserved populations.
The clinical review criteria must be evidence-based criteria and must accommodate new and emerging information related to the appropriateness of clinical criteria with p.
10 HB 1566 respect to black and indigenous people, other people of color, gender, and underserved populations.
(((2))) (e) When denying a prior authorization determination, the managed care organization shall include the credentials, board certifications, and areas of specialty expertise and training of the provider who had clinical oversight over the determination in any notification sent to the managed care enrollee and provider requesting or referring the service.
(((2))) (e) When issuing a notification for a prior authorization determination, the managed care organization and any contracted health care benefit manager shall include a unique identifier for the individual who initially reviewed and made the determination.
(2)(a) Managed care organizations maintain the ability to make adjustments to policies and procedures that impact the applicability of their prior authorization requirements.
The managed care organization shall also include the national provider identification number of the physician who had clinical oversight for the determination as well as the physician's credentials, board certifications, and areas of specialty expertise and training in any notification sent to the managed care enrollee and provider requesting or referring the service.
Except as provided in (b) of this subsection, beginning August 1, 2025, these adjustments can only be made quarterly and go into effect either January 1st, April 1st, July 1st, or October 1st of any given calendar year.
(f) In the case of an adverse benefit determination, a managed care organization shall make available to the requesting provider a peer-to-peer review discussion.
Notification of policy changes must be provided to all in-network providers at least 45 days prior to the quarterly update and must be available to providers in a single location on the managed care organization's website.
The peer reviewer provided by the managed care organization must possess a current and valid nonrestricted license to practice medicine in Washington state and must be knowledgeable of and have experience providing the same or similar service as the health care service under review, and must have authority to modify or overturn the care determination decision.
The notification must be provided independent of other policy changes or provider notification publications and be easily accessible in electronic provider and enrollee portals.
(2) Managed care organizations maintain the ability to make adjustments to policies and procedures that impact the applicability of their prior authorization requirements.
(b) Adjustments to policies and procedures that impact the applicability of prior authorization requirements to reflect federal food and drug administration approvals, national comprehensive cancer network guidelines, United States preventive services task force guidelines, or state or national public health emergencies may be made at any time and shall be posted on the website referenced in (a) of this subsection.
Beginning August 1, 2025, these adjustments can only be made once annually and go into effect January 1st of any given calendar year.
Notification of adjustments made under this subsection must be provided to all in-network providers as soon as possible.
Notification of policy changes must be provided to all in-network providers at least four months prior to the January 1st effective date.
p.
The notification must be provided independent to other policy changes or provider notification publications and be easily accessible in electronic provider and enrollee portals.
11 SHB 1566 (3)(a) Only a licensed physician or a licensed health professional working within their scope of practice may deny a prior authorization request based on medical necessity.
(3)(a) A determination of medical necessity shall be made only by a licensed physician or a licensed health professional working within their scope of practice.
An artificial intelligence tool shall not be the sole means used to deny, delay, or modify health care services.
An artificial intelligence, p.
Algorithms may be used to process and approve prior authorization requests, but may not be used without human review to deny care based on a determination of medical necessity.
11 HB 1566 algorithm, or related software tool shall not be the sole means used to deny, delay, or modify health care services.
(b) A managed care organization that uses an artificial intelligence tool for the purpose of prior authorization or prior authorization functions, based in whole or in part on medical necessity, or that contracts with or otherwise works through an entity that uses an artificial intelligence tool for the purpose of prior authorization or prior authorization functions, based in whole or in part on medical necessity, shall ensure all of the following:
(b) A managed care organization and any contracted health care benefit manager that uses an artificial intelligence, algorithm, or other software tool for the purpose of prior authorization or prior authorization functions, based in whole or in part on medical necessity, or that contracts with or otherwise works through an entity that uses an artificial intelligence, algorithm, or related software tool for the purpose of prior authorization or prior authorization functions, based in whole or in part on medical necessity, shall ensure all of the following:
(i) The artificial intelligence tool bases its determination on the following information, as applicable:
(i) The artificial intelligence, algorithm, or other software tool bases its determination on the following information, as applicable:
(A) An enrollee's medical or other clinical history, including demographic data;
(A) An enrollee's medical or other clinical history;
and (B) Individual clinical circumstances as presented by the requesting provider;
(B) Individual clinical circumstances as presented by the requesting provider;
(ii) The artificial intelligence tool does not base its determination solely on a group data set;
and (C) Other relevant clinical information contained in the enrollee's medical or other clinical record;
(iii) The artificial intelligence tool's criteria and guidelines comply with this chapter and applicable state and federal law;
(ii) The artificial intelligence, algorithm, or other software tool does not base its determination solely on a group data set;
(iv) The use of the artificial intelligence tool does not discriminate, directly or indirectly, against an enrollee in violation of state or federal law;
(iii) The artificial intelligence, algorithm, or other software tool's criteria and guidelines complies with this chapter and applicable state and federal law;
(v) The artificial intelligence tool is fairly and equitably applied, including in accordance with any applicable regulations and guidance issued by the federal department of health and human services;
(iv) The use of the artificial intelligence, algorithm, or other software tool does not discriminate, directly or indirectly, against an enrollee in violation of state or federal law;
(vi) The policies and procedures for using the artificial intelligence tool are open to audit by the authority consistent with RCW 74.09.200;
(v) The artificial intelligence, algorithm, or other software tool is fairly and equitably applied, including in accordance with any applicable regulations and guidance issued by the federal department of health and human services;
p.
(vi) The policies and procedures for using the artificial intelligence, algorithm, or other software tool is open to audit by the authority consistent with RCW 74.09.200;
12 SHB 1566 (vii) The artificial intelligence tool's performance, use, and outcomes are periodically reviewed by the managed care organization to maximize accuracy and reliability;
(vii) The artificial intelligence, algorithm, or other software tool's performance, use, and outcomes are periodically reviewed to maximize accuracy and reliability;
and (viii) Patient data is not used beyond its intended and stated purpose, consistent with chapter 70.02 RCW and the federal health insurance portability and accountability act of 1996, 42 U.S.C.
and (viii) Patient data is not used beyond its intended and stated purpose, consistent with chapter 70.02 RCW and the federal health p.
12 HB 1566 insurance portability and accountability act of 1996, 42 U.S.C.
(4) By July 1, 2027, the authority shall publish a list of treatments, prescription drugs, equipment, and services, along with their applicable billing codes, that specifies under which circumstances prior authorization is required, prohibited, or has other uniform application across the medical assistance program under this chapter.
(4)(a) By January 1, 2026, managed care organizations shall submit the total number of prior authorization requests, approvals, and denials to the authority on a quarterly basis.
The authority must consider applicable state and federal laws when deciding which services are not subject to prior authorization.
Managed care organizations shall report these totals by health plan and for each health care benefit manager that is delegated to provide care determinations on behalf of the managed care organization.
The authority shall focus on existing prior authorization requirements and treatments, prescription drugs, equipment, and services that are treated inconsistently in the medical assistance program.
Managed care organizations shall indicate the percentage of total denials that were aided by artificial intelligence tools and algorithms and the percent of care determinations made after the emergent and nonemergent authorization request turnaround times stated above.
The authority shall update the list at least annually and provide notice and an opportunity for public comment prior to finalizing the list.
(b) The authority shall provide a reporting template to managed care organizations 90 days prior to the first report submission and shall review the template annually for updates.
Nothing in this subsection alters existing obligations of the authority and managed care organizations to ensure enrollee access to treatments, prescription drugs, equipment, and services that are not included in the list.
(c) The authority shall publish on its website the results of each managed care organization's report 45 days after submission, along with their own prior authorization statistics for fee-for- service medicaid enrollees.
Nothing in this section prohibits the authority and managed care organizations from applying other utilization management strategies, consistent with state and federal law, for services for which prior authorization is not required.
(5) By July 1, 2027, the authority shall determine which treatments, prescription drugs, and services, along with their applicable billing codes, do not require prior authorization by managed care organizations for any medicaid enrollee.
(5)(a) Each managed care organization shall build and maintain a prior authorization application programming interface that automates the process for in-network providers to determine whether a prior authorization is required for health care services, identify prior authorization information and documentation requirements, and facilitate the exchange of prior authorization requests and determinations from its electronic health records or practice management system.
The authority must consider applicable state and federal program integrity regulations when deciding which services they will waive prior authorization requirements.
(6)(a) Each managed care organization shall build and maintain a prior authorization application programming interface that automates the process for in-network providers to determine whether a prior authorization is required for health care services, identify prior authorization information and documentation requirements, and facilitate the exchange of prior authorization requests and determinations from its electronic health records or practice management system.
13 SHB 1566 (ii) Automate the process to determine whether a prior authorization is required for durable medical equipment or a health care service;
13 HB 1566 (ii) Automate the process to determine whether a prior authorization is required for durable medical equipment or a health care service;
and (iv) Include the credentials, board certifications, and areas of specialty expertise and training of the provider who had clinical p.
and (iv) Include a unique identifier for the individual who initially reviewed and made the determination.
14 SHB 1566 oversight over the determination in any notification sent to the managed care enrollee and provider requesting or referring the service.
The managed care organization p.
14 HB 1566 and any contracted health care benefit manager must also include the national provider identification number of the physician who had clinical oversight for the determination as well as the physician's credentials, board certifications, and areas of specialty expertise and training in any notification sent to the managed care enrollee and provider requesting or referring the service.
(ii) The authority may grant a one-year delay in enforcement of the requirements of (a) of this subsection (((2))) (5) if the authority determines that the managed care organization has made a good faith effort to comply with the requirements.
(ii) The authority may grant a one-year delay in enforcement of the requirements of (a) of this subsection (((2))) (6) if the authority determines that the managed care organization has made a good faith effort to comply with the requirements.
(iii) This subsection (((2))) (5)(d) shall not apply if the delay in enforcement in (c) of this subsection takes effect because the federal centers for medicare and medicaid services did not finalize the applicable regulations by September 13, 2023.
(iii) This subsection (((2))) (6)(d) shall not apply if the delay in enforcement in (c) of this subsection takes effect because the federal centers for medicare and medicaid services did not finalize the applicable regulations by September 13, 2023.
(((3))) (6) This section applies to prior authorization functions carried out by health care benefit managers, as defined in RCW 48.200.020, under direct or indirect contract with a carrier.
(((3))) (7) Nothing in this section applies to prior authorization determinations made pursuant to RCW 71.24.618 or 74.09.490.
(7) The authority may adopt any rules necessary to implement this section.
(((4))) (8) For the purposes of this section:
(8) Nothing in this section applies to prior authorization determinations made pursuant to RCW 71.24.618 or 74.09.490.
(((4))) (9) For the purposes of this section:
15 SHB 1566 computer vision, speech or natural language processing, and content generation.
15 HB 1566 computer vision, speech or natural language processing, content generation, and forecasting future outcomes.
"Artificial intelligence" includes generative artificial intelligence.
(((b))) (c) "Generative artificial intelligence" means an artificial intelligence system that generates novel data or content based on a foundation model.
(((b))) (c) "Standard prior authorization request" means a request by a provider or facility for approval of a health care service or prescription drug where the request is made in advance of the enrollee obtaining a health care service or prescription drug that is not required to be expedited.
(d) "Machine learning" means the process by which artificial intelligence is developed using data and algorithms to draw inferences therefrom to automatically adapt or improve its accuracy without explicit programming.
(e) "Standard prior authorization request" means a request by a provider or facility for approval of a health care service or prescription drug where the request is made in advance of the enrollee obtaining a health care service or prescription drug that is not required to be expedited.
(a) The health plan shall meet the following time frames for prior authorization determinations and notifications to a participating provider or facility that submits the prior p.
(a) The health plan shall meet the following time frames for prior authorization determinations and notifications to a participating provider or facility that submits the prior authorization request through an electronic prior authorization process:
16 SHB 1566 authorization request through an electronic prior authorization process:
If insufficient information has been provided to the health plan to make a decision, the health plan shall request any additional information from the provider or facility within one calendar day of submission of the electronic prior authorization request.
If insufficient information has been p.
16 HB 1566 provided to the health plan to make a decision, the health plan shall request any additional information from the provider or facility within one calendar day of submission of the electronic prior authorization request.
(ii) For nonelectronic expedited prior authorization requests, the health plan shall make a decision and notify the provider or p.
(ii) For nonelectronic expedited prior authorization requests, the health plan shall make a decision and notify the provider or facility of the results of the decision within two calendar days of submission of a nonelectronic prior authorization request by the provider or facility that contains the necessary information to make a determination.
17 SHB 1566 facility of the results of the decision within two calendar days of submission of a nonelectronic prior authorization request by the provider or facility that contains the necessary information to make a determination.
(c) In any instance in which the health plan has determined that a provider or facility has not provided sufficient information for making a determination under (a) and (b) of this subsection, the health plan may establish a specific reasonable time frame for submission of the additional information.
p.
17 HB 1566 (c) In any instance in which the health plan has determined that a provider or facility has not provided sufficient information for making a determination under (a) and (b) of this subsection, the health plan may establish a specific reasonable time frame for submission of the additional information.
(((2))) (e) When denying a prior authorization determination, the health plan shall include the credentials, board certifications, and areas of specialty expertise and training of the provider who had clinical oversight over the determination in any notification sent to the health plan enrollee and provider requesting or referring the service.
(((2))) (e) When issuing a notification for a prior authorization determination, the health plan and any contracted health care benefit manager shall include a unique identifier for the individual who initially reviewed and made the determination.
(2)(a) Health plans maintain the ability to make adjustments to policies and procedures that impact the applicability of their prior authorization requirements.
The health plan shall also include the national provider identification number of the physician who had clinical oversight for the determination as well as the physician's credentials, board certifications, and areas of specialty expertise and training in any notification sent to the health plan enrollee and provider requesting or referring the service.
Except as provided in (b) of this subsection, beginning August 1, 2025, these adjustments can only be made quarterly and go into effect either January 1st, April 1st, July 1st, or October 1st of any given calendar year.
(f) In the case of an adverse benefit determination, a health plan shall make available to the requesting provider a peer-to-peer review discussion.
Notification of p.
The peer reviewer provided by the health plan must possess a current and valid nonrestricted license to practice medicine in Washington state and must be knowledgeable of and have experience providing the same or similar service as the health care service under review, and must have authority to modify or overturn the care determination decision.
18 SHB 1566 policy changes must be provided to all in-network providers at least 45 days prior to the quarterly update and must be available to providers in a single location on the health plan's website.
(2) Health plans maintain the ability to make adjustments to policies and procedures that impact the applicability of their prior p.
The notification must be provided independent of other policy changes or provider notification publications and be easily accessible in electronic provider and enrollee portals.
18 HB 1566 authorization requirements.
(b) Adjustments to policies and procedures that impact the applicability of prior authorization requirements to reflect federal food and drug administration approvals, national comprehensive cancer network guidelines, United States preventive services task force guidelines, or state or national public health emergencies may be made at any time and shall be posted on the website referenced in (a) of this subsection.
Beginning August 1, 2025, these adjustments can only be made once annually and go into effect January 1st of any given calendar year.
Notification of adjustments made under this subsection must be provided to all in-network providers as soon as possible.
Notification of policy changes must be provided to all in-network providers at least four months prior to the January 1st effective date.
(3)(a) Only a licensed physician or a licensed health professional working within their scope of practice may deny a prior authorization request based on medical necessity.
The notification must be provided independent to other policy changes or provider notification publications and be easily accessible in electronic provider and enrollee portals.
(3)(a) A determination of medical necessity shall be made only by a licensed physician or a licensed health professional working within their scope of practice.
An artificial intelligence tool shall not be the sole means used to deny, delay, or modify health care services.
An artificial intelligence, algorithm, or related software tool shall not be the sole means used to deny, delay, or modify health care services.
Algorithms may be used to process and approve prior authorization requests, but may not be used without human review to deny care based on a determination of medical necessity.
(b) A health plan and any contracted health care benefit manager that uses an artificial intelligence, algorithm, or other software tool for the purpose of prior authorization or prior authorization functions, based in whole or in part on medical necessity, or that contracts with or otherwise works through an entity that uses an artificial intelligence, algorithm, or related software tool for the purpose of prior authorization or prior authorization functions, based in whole or in part on medical necessity, shall ensure all of the following:
(b) A health plan that uses an artificial intelligence tool for the purpose of prior authorization or prior authorization functions, based in whole or in part on medical necessity, or that contracts with or otherwise works through an entity that uses an artificial intelligence tool for the purpose of prior authorization or prior authorization functions, based in whole or in part on medical necessity, shall ensure all of the following:
(i) The artificial intelligence, algorithm, or other software tool bases its determination on the following information, as applicable:
(i) The artificial intelligence tool bases its determination on the following information, as applicable:
(A) An enrollee's medical or other clinical history;
(A) An enrollee's medical or other clinical history, including demographic data;
(B) Individual clinical circumstances as presented by the requesting provider;
and p.
and (C) Other relevant clinical information contained in the enrollee's medical or other clinical record;
19 SHB 1566 (B) Individual clinical circumstances as presented by the requesting provider;
(ii) The artificial intelligence, algorithm, or other software tool does not base its determination solely on a group data set;
(ii) The artificial intelligence tool does not base its determination solely on a group data set;
(iii) The artificial intelligence, algorithm, or other software tool's criteria and guidelines complies with this chapter and applicable state and federal law;
(iii) The artificial intelligence tool's criteria and guidelines comply with this chapter and applicable state and federal law;
p.
(iv) The use of the artificial intelligence tool does not discriminate, directly or indirectly, against an enrollee in violation of state or federal law;
19 HB 1566 (iv) The use of the artificial intelligence, algorithm, or other software tool does not discriminate, directly or indirectly, against an enrollee in violation of state or federal law;
(v) The artificial intelligence tool is fairly and equitably applied, including in accordance with any applicable regulations and guidance issued by the federal department of health and human services;
(v) The artificial intelligence, algorithm, or other software tool is fairly and equitably applied, including in accordance with any applicable regulations and guidance issued by the federal department of health and human services;
(vi) The policies and procedures for using the artificial intelligence tool is open to audit by the office of the insurance commissioner;
(vi) The policies and procedures for using the artificial intelligence, algorithm, or other software tool is open to audit by the office of the insurance commissioner;
(vii) The artificial intelligence tool's performance, use, and outcomes are periodically reviewed by the health plan to maximize accuracy and reliability;
(vii) The artificial intelligence, algorithm, or other software tool's performance, use, and outcomes are periodically reviewed to maximize accuracy and reliability;
p.
(iii) Allow providers to query the health plan's prior authorization documentation requirements;
20 SHB 1566 (iii) Allow providers to query the health plan's prior authorization documentation requirements;
(iv) Support an automated approach using nonproprietary open workflows to compile and exchange the necessary data elements to populate the prior authorization requirements that are compliant with the federal health insurance portability and accountability act of p.
(iv) Support an automated approach using nonproprietary open workflows to compile and exchange the necessary data elements to populate the prior authorization requirements that are compliant with the federal health insurance portability and accountability act of 1996 or have an exception from the federal centers for medicare and medicaid services;
20 HB 1566 1996 or have an exception from the federal centers for medicare and medicaid services;
and (vi) Include the credentials, board certifications, and areas of specialty expertise and training of the provider who had clinical oversight over the determination in any notification sent to the health plan enrollee and provider requesting or referring the service.
and (vi) Include a unique identifier for the individual who initially reviewed and made the determination.
The health plan and any contracted health care benefit manager must also include the national provider identification number of the physician who had clinical oversight for the determination as well as the physician's credentials, board certifications, and areas of specialty expertise and training in any notification sent to the health plan enrollee and provider requesting or referring the service.
and (iii) Indicate that a prior authorization denial or authorization of a drug other than the one included in the original prior authorization request is an adverse benefit determination and is p.
and (iii) Indicate that a prior authorization denial or authorization of a drug other than the one included in the original prior authorization request is an adverse benefit determination and is subject to the health plan's grievance and appeal process under RCW 48.43.535.
21 SHB 1566 subject to the health plan's grievance and appeal process under RCW 48.43.535.
(c) If federal rules related to standards for using an application programming interface to communicate prior authorization p.
(c) If federal rules related to standards for using an application programming interface to communicate prior authorization status to providers are not finalized by the federal centers for medicare and medicaid services by September 13, 2023, the requirements of (a) of this subsection may not be enforced until January 1, 2026.
21 HB 1566 status to providers are not finalized by the federal centers for medicare and medicaid services by September 13, 2023, the requirements of (a) of this subsection may not be enforced until January 1, 2026.
(((4))) (6) This section applies to prior authorization functions carried out by health care benefit managers, as defined in RCW 48.200.020, under direct or indirect contract with a carrier.
(((4))) (6) For the purposes of this section:
(7) The commissioner may adopt any rules necessary to implement this section.
(a) "Artificial intelligence" means the use of machine learning and related technologies that use data to train statistical models for the purpose of enabling computer systems to perform tasks normally associated with human intelligence or perception, such as computer vision, speech or natural language processing, content generation, and forecasting future outcomes.
(8) For the purposes of this section:
(a) "Artificial intelligence" means the use of machine learning and related technologies that use data to train statistical models for the purpose of enabling computer systems to perform tasks normally associated with human intelligence or perception, such as computer vision, speech or natural language processing, and content p.
22 SHB 1566 generation.
"Artificial intelligence" includes generative artificial intelligence.
or (C) In the opinion of a provider or facility with knowledge of the enrollee's medical condition, would subject the enrollee to severe pain that cannot be adequately managed without the health care service or prescription drug that is the subject of the request;
or p.
22 HB 1566 (C) In the opinion of a provider or facility with knowledge of the enrollee's medical condition, would subject the enrollee to severe pain that cannot be adequately managed without the health care service or prescription drug that is the subject of the request;
(((b))) (c) "Generative artificial intelligence" means an artificial intelligence system that generates novel data or content based on a foundation model.
(((b))) (c) "Standard prior authorization request" means a request by a provider or facility for approval of a health care service or prescription drug where the request is made in advance of the enrollee obtaining a health care service that is not required to be expedited.
(d) "Machine learning" means the process by which artificial intelligence is developed using data and algorithms to draw inferences therefrom to automatically adapt or improve its accuracy without explicit programming.
(((5))) (7) This section shall not apply to coverage provided under the medicare part C or part D programs set forth in Title XVIII of the social security act of 1965, as amended.
(e) "Standard prior authorization request" means a request by a provider or facility for approval of a health care service or prescription drug where the request is made in advance of the enrollee obtaining a health care service that is not required to be expedited.
(((5))) (9) This section shall not apply to coverage provided under the medicare part C or part D programs set forth in Title XVIII of the social security act of 1965, as amended.
(1) A health carrier that offers a health plan shall not retrospectively deny coverage or retrospectively modify to a service less intensive than that included in the original request for emergency and nonemergency care that had prior authorization, including for medical necessity, under the plan's written policies at the time the care was rendered, unless:
(1) A health carrier that offers a health plan shall not retrospectively deny coverage for emergency and nonemergency care that had prior authorization under the plan's written policies at the time the care was rendered.
p.
(2) Retrospective denials shall not be considered adverse benefit determinations and will not be required to follow the standard appeals processes in RCW 48.43.525 or any carrier policies related to their own grievance and appeals process.
23 SHB 1566 (a) The prior authorization was based upon a material misrepresentation by the provider, facility, or covered person;
or (b) The underlying health plan coverage is lawfully rescinded, canceled, or terminated retrospectively through the date of service.
(2) Retrospective denials of services with prior authorization or retrospective modification to less intensive services due to a change in the carrier's determination of medical necessity are prohibited, shall not be considered adverse benefit determinations, and will not be required to follow the standard appeals processes in RCW 48.43.530 or any carrier policies related to their own grievance and appeals process.
Interest will be assessed on the associated claim submitted by the provider at the rate of one percent per month, retroactive to the original date of the authorization request.
Interest will be assessed on the associated claim at the rate of one percent per month, retroactive to the original date of the authorization request.
(1) By ((October 1, 2020,)) January 1, 2026, and annually thereafter, for individual and group health plans issued by a carrier that has written at least one percent of the total accident and health insurance premiums written by all companies authorized to offer accident and health insurance in Washington in the most recently available year, the carrier shall report to the commissioner the following aggregated and deidentified data related to the carrier's prior authorization practices and experience for the prior plan year:
(1) By ((October 1, 2020,)) January 1, 2026, and annually thereafter, for individual and group health plans issued by a carrier p.
23 HB 1566 that has written at least one percent of the total accident and health insurance premiums written by all companies authorized to offer accident and health insurance in Washington in the most recently available year, the carrier shall report to the commissioner the following aggregated and deidentified data related to the carrier's prior authorization practices and experience for the prior plan ((year)) quarter:
The carrier must report these totals separately for approvals or denials made by the carrier directly and for approvals or denials made by a health care benefit manager as defined in RCW 48.200.020 that is delegated to make prior authorization determinations, either directly or indirectly, on behalf of the carrier.
The carrier must report these totals by both health plan and each health care benefit manager as defined in RCW 48.200.020 that is delegated to provide care determinations on behalf of the carrier.
p.
(i) The percentage of total denials that were aided by artificial intelligence tools and algorithms;
24 SHB 1566 (i) The percentage of total denials that were aided by artificial intelligence tools;
and (ii) The percent of care determinations made after the emergent and nonemergent authorization request turnaround times stated in RCW 48.43.830;
and (ii) The percent of prior authorization determinations made after the standard and expedited authorization request turnaround times stated in RCW 48.43.830;
and (iii) With the highest percentage of prior authorization requests that were initially denied and then subsequently approved on appeal, including the total number of prior authorization requests for each code and the percent of requests that were initially denied and then subsequently approved for each code;
and p.
24 HB 1566 (iii) With the highest percentage of prior authorization requests that were initially denied and then subsequently approved on appeal, including the total number of prior authorization requests for each code and the percent of requests that were initially denied and then subsequently approved for each code;
p.
(ii) With the highest percentage of approved prior authorization requests during the previous plan year, including the total number of prior authorization requests for each code and the percent of approved requests for each code;
25 SHB 1566 (ii) With the highest percentage of approved prior authorization requests during the previous plan year, including the total number of prior authorization requests for each code and the percent of approved requests for each code;
(ii) With the highest percentage of approved prior authorization requests during the previous plan year, including the total number of prior authorization requests for each code and the percent of approved requests for each code;
p.
25 HB 1566 (ii) With the highest percentage of approved prior authorization requests during the previous plan year, including the total number of prior authorization requests for each code and the percent of approved requests for each code;
p.
(i) With the highest total number of prior authorization requests during the previous plan year, including the total number of prior authorization requests for each code and the percent of approved requests for each code;
26 SHB 1566 (i) With the highest total number of prior authorization requests during the previous plan year, including the total number of prior authorization requests for each code and the percent of approved requests for each code;
and (((h))) (i) The average determination response time in hours for prior authorization requests to the carrier in total reported under (a) of this subsection and with respect to each code reported under (((a))) (b) through (((f))) (h) of this subsection for each of the following categories of prior authorization:
and (((h))) (i) The average determination response time in hours for prior authorization requests to the carrier in total reported under p.
26 HB 1566 (a) of this subsection and with respect to each code reported under (((a))) (b) through (((f))) (h) of this subsection for each of the following categories of prior authorization:
p.
(b) The report must contain trend data for total authorization requests, approvals, and denials by plan and health care benefit managers.
27 SHB 1566 (b) The report must contain trend data for total authorization requests, approvals, and denials by plan and health care benefit managers.
28 SHB 1566
27 HB 1566
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Action History

  1. By resolution, reintroduced and retained in present status.

  2. Referred to Appropriations.

  3. Minority; without recommendation.

  4. HCW - Majority; 1st substitute bill be substituted, do pass.

  5. Executive action taken in the House Committee on Health Care & Wellness at 1:30 PM.

  6. Public hearing in the House Committee on Health Care & Wellness at 1:30 PM.

  7. First reading, referred to Health Care & Wellness.

Sponsors

Sponsorship breakdown

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1 sponsors · 4 co-sponsors · 146 not signed on

Sponsors (1)

Co-sponsors (4)

Not signed on (146)

146 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Subjects

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Frequently asked questions

Who sponsors HB 1566?
HB 1566 is sponsored by Shelley Kloba (Democrat), Gerry Pollet (Democrat), Clyde Shavers (Democrat), Matt Marshall (Republican), and Alicia Rule (Democrat).
What is the current status of HB 1566?
This bill has passed the House. Introduced January 24, 2025. It now moves to the second chamber.
Where can I track HB 1566?
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