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Wednesday, March 19, 2025

Optum to drop prior authorization requirement for dozens of prescription drugs

United Health Care is feeling the heat !

Optum is a wholly owned subsidiary of UHC.

UHC  has been under the gun since its policy on denials for tests, treatments, and medications came to light following the murder of its CEO, Brian Thompson.

The event was even questioned by Congress.  In 1972 Congress passed legislation for doctors to contract with insurance companies for preferential treatment as preferred providers. Since then the ehtics of health care has spiralled into what we now witness today.

Optum is a Pharmacy Benefit Manager which interfaces between drug manufacturers, pharmacies to regulate rates and dispensing of medications.



Optum, through its pharmacy benefit manager (PBM) Optum Rx, generated $116.09 billion in revenue in 2023, a 16.4% increase over 2022, and is a key driver of UnitedHealth Group's overall profit. 

Optum Rx — which includes the pharmacy benefit manager of health care conglomerate UnitedHealth Group — is dropping annual reauthorization requirements for 80 drugs, which will eliminate more than 10% of overall pharmacy prior authorizations, the company announced.

Why it matters: Prior authorizations have rocketed to the center of healthcare policy conversations, driven largely by patients' frustration with a practice that can result in delayed or even denied care.

What they're saying: The company identified drugs that are "no longer clinically necessary to review" every year, said Patrick Conway, CEO of Optum Rx.

  • These include medications for cystic fibrosis, asthma, and other chronic diseases. "We can make it simpler for doctors, pharmacists, and patients," Conway said.
  • The change will eliminate up to one-quarter of total drug reauthorizations, the company said. The program begins on May 1, and the list of included drugs will expand over time.
  • The company said earlier this year that it will pass 100% of drug rebates negotiated with manufacturers to its clients.

Between the lines: Although the Biden administration attempted to streamline the use of prior authorizations by insurers through regulation, drugs were exempted from new federal rules last year.

  • And PBM business practices — including rebates — have long been criticized by lawmakers of both parties, leading to a slew of legislation in recent years.
  • A bipartisan PBM reform bill nearly passed at the end of last year but failed to make it across the finish line.
Change is coming as negative public opinion about health insurance soars. Patients are demanding scrutiny of health insurance companies by the Congress.

Senate probes Medicare Advantage plans over algorithms ...

Congress Investigating Prior Authorization Denials from ...


Congress set the stage for this debacle, and they must fix it.




Optum to drop prior authorization requirement for dozens of prescription drugs

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