California governor signs CMA-backed bill reforming prior authorization process

Dustin Corcoran, Chief Executive Officer at California Medical Association
Dustin Corcoran, Chief Executive Officer at California Medical Association
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Governor Gavin Newsom has signed Senate Bill 306 into law, a measure sponsored by the California Medical Association (CMA) and authored by Senator Josh Becker. The law aims to reform the prior authorization process in California’s health care system by removing repetitive approval requirements and adding new transparency rules.

Prior authorization requires physicians to get approval from health plans before treating patients, a process that has been criticized for causing delays and administrative challenges. The new law allows regulators to waive prior authorization for services that are almost always approved and requires health plans to publish data on their approval patterns.

CMA President Shannon Udovic-Constant, M.D., said, “This law is a decisive step toward ending wasteful prior authorization practices that too often delay or deny patients the care they need. By cutting out redundant requirements and increasing accountability, SB 306 puts patients’ health above paperwork. We thank Governor Newsom for his leadership in signing this reform into law and ensuring that California moves closer to a health care system where medical decisions are driven by clinical expertise rather than bureaucracy.”

The bill received strong bipartisan support in the Legislature, indicating agreement on the need to simplify prior authorization in order to protect patient health and reduce administrative work for physicians.

SB 306 was included in CMA’s legislative package for 2025.



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