California enacts SB 306 to streamline prior authorization in healthcare

Dustin Corcoran, Chief Executive Officer at California Medical Association
Dustin Corcoran, Chief Executive Officer at California Medical Association - 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.

Prior authorization requires physicians to obtain approval from health plans before providing certain treatments, a process that has faced criticism for causing delays and adding administrative challenges. The new law allows regulators to waive prior authorization for services that are routinely approved and mandates that health plans publish data on their approval patterns.

“This law is a decisive step toward ending wasteful prior authorization practices that too often delay or deny patients the care they need,” said CMA President Shannon Udovic-Constant, M.D. “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.”

SB 306 received strong bipartisan support in the Legislature. It was included as part of CMA’s legislative package for 2025.



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