Illinois becomes 1st state to ban prior authorization for inpatient behavioral care

Illinois will ban prior authorization for inpatient mental health treatment. 

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Gov. JB Pritzker signed a set of health insurance reforms into law July 10. Beginning in 2026, insurers in the state will be unable to impose prior authorization requirements on inpatient psychiatric treatment for both children and adults. 

Illinois is the first state to ban prior authorization for inpatient psychiatric care, Mr. Pritzker said in January. 

The law will also require insurers to disclose all services that require prior authorization on their website, and impose stricter requirements to maintain an accurate provider network directory. 

A separate law signed July 10 will ban short-term or “junk insurance” plans in the state. 

The federal government is also eyeing tougher regulations on behavioral healthcare for insurers. The Biden administration has signaled rules barring insurers from implementing stricter utilization management for behavioral care than physical care could be finalized in July. 

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