Amazon, Axon Enterprise, Google, Meta, and Oracle have signed a statement supporting expansion of electronic prior authorization to self-funded health plans, the Centers for Medicare & Medicaid Services and U.S. Department of Labor announced.
Prior authorization is the process by which insurers must approve certain medical treatments before they proceed. The current system relies heavily on manual processes, faxes, and phone calls, creating administrative delays for patients and providers. More than 53% of Americans — approximately 180 million people — receive health coverage through self-funded employer plans, according to U.S. Census data.
The employers said expanding electronic prior authorization to the self-funded market would reduce reliance on manual processes and make it easier for healthcare providers to navigate approval workflows across different coverage types. "Patients and doctors shouldn't have to fall back on faxes and paperwork simply because of how a patient's health plan is funded," said CMS Administrator Dr. Mehmet Oz.
The announcement builds on the Trump administration's work to modernize prior authorization across the broader healthcare system. In June 2025, CMS secured voluntary commitments from major health plans to standardize electronic prior authorization, reduce the volume of services requiring approval, improve transparency, and increase real-time responses. CMS' Interoperability and Prior Authorization Final Rule also requires certain payers to implement electronic prior authorization capabilities beginning Jan. 1, 2027.