Prior authorization: physical therapy.

Plain English Breakdown

The bill was vetoed by the governor and needs further action to become a law.

No Prior Authorization for Initial Physical Therapy Visits

AB-574 prohibits health care plans and insurance companies from requiring prior approval for the first 12 physical therapy visits when a new condition is treated, but allows it for recurring conditions.

What This Bill Does

• Removes the need for patients to get permission before starting their first 12 physical therapy sessions if they have a new health issue.
• Allows insurance companies and health care plans to still require prior approval for physical therapy visits when the condition keeps coming back.
• Requires physical therapists to tell patients about any costs that might not be covered by their plan.

Who It Names or Affects

• People who have health care plans or insurance policies that cover physical therapy.
• Physical therapists and clinics providing physical therapy treatments.

Terms To Know

Prior authorization

When a patient needs permission from their insurance company before getting certain medical services.

Enrollee

A person who is part of a health care plan or program.

Limits and Unknowns

• The bill does not apply to Medi-Cal managed care plans.
• It only applies to new conditions, not recurring ones.
• If the governor's veto isn't overturned, this law won't become official.

Official Summary Text

AB 574, Mark González.
Prior authorization: physical therapy.
Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care, and makes a willful violation of the act a crime. Existing law provides for the regulation of health insurers by the Department of Insurance. Existing law sets forth specified prior authorization limitations for health care service plans and health insurers.
This bill would prohibit a health care service plan contract or health insurance policy issued, amended, or renewed on or after January 1, 2027, that provides coverage for physical therapy from imposing prior authorization for the initial 12 physical therapy treatment visits for a new
condition. The bill would authorize prior authorization for physical therapy for a recurring condition, as specified. The bill would require a physical therapy provider to verify an enrollee’s or an insured’s coverage and disclose their share of the cost of care, as specified. The bill would require a physical therapy provider to obtain separate written consent for costs that may not be covered by the enrollee’s or insured’s plan contract or policy, that includes a written estimate of the cost of care for which the enrollee or insured is responsible if coverage is denied or otherwise not applicable. With respect to health care service plans, the bill would specify that its provisions do not apply to Medi-Cal managed care plan contracts. Because a willful violation of this provision by a health care service plan would be a crime, the bill would impose a state-mandated local program.
The California Constitution
requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Current Bill Text

Download Bill PDF