The cost of manual prior authorization requirements on physician practices increased 65% in 2019. This is an increase from $6.61 per authorization in 2018, to $10.92 per authorization in 2019. However, payer cost for the same transaction decreased 5.1%, from $3.50 in 2018 to $3.32 in 2019. In 2019, prior authorization was the least-used form of electronic administrative transactions, with 13% of medical plans using electronic submission for prior authorizations. Of the $40.6 billion spent on administrative transactions, $13.3 billion (about 32.8%) could be saved by completing the transition electronically.
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