State advocacy win: Step therapy reform enacted in Alaska

A step therapy and prior authorization reform bill enacted in Alaska will require insurers to establish a streamlined prior authorization process that minimizes administrative burdens on physicians. The legislation provided a clear and convenient process for requesting exceptions to step therapy protocols and conditions for automatic approval of step therapy exemptions.

The AADA supported the legislation, which required insurers to provide decisions within 72 hours for standard requests and 24 hours for expedited requests. A prior authorization for a chronic condition will be valid for a period of not less than 12 months while the covered person remains insured and at least 90 days for other conditions.

The legislation takes effect Jan. 1, 2027, and included provisions of the model bill drafted by the AADA and other members of the State Access to Innovative Medicines Coalition.

Read more about the Academy’s step therapy reform advocacy efforts.