Specific denial reason for drugs
Oct 1, 2027 proposed
- Medicaid and CHIP FFS, managed care, QHP issuers [1]
CMS-0057-F left drugs out of every 2027 API [2]. CMS-0062-P, released April 10, 2026, closes the gap by benefit type.
| Payer | Drug prior authorization through API and NCPDP standards | Specific denial reason for drugs |
|---|---|---|
| Medicare Advantage organizations | Oct 1, 2027 proposed | Existing Part B drug rules continue |
| State Medicaid and CHIP FFS programs | Oct 1, 2027 proposed; extension process proposed | Oct 1, 2027 proposed |
| Medicaid managed care plans and CHIP managed care entities | Oct 1, 2027 proposed | Oct 1, 2027 proposed |
| QHP issuers on the FFEs | Oct 1, 2027 proposed; exception process via QHP certification | Oct 1, 2027 proposed |
| Small group QHP issuers on the FF-SHOPs | Plan years from Jan 1, 2028 proposed | Same |
Non-drug clocks from the 2024 rule [2]; CHIP FFS prescription drugs would also get 24 hours.
Oct 1, 2027 proposed
To CMS
From 2028
Replaces small-state exemption
45 CFR 170.215
Drugs get their own API track nine months after procedures. The medical-versus-pharmacy flag decides the standard, the system and the date.
A proposed rule from CMS and ONC, published in the Federal Register on April 14, 2026, that would require impacted payers to support electronic prior authorization for all drugs through the Prior Authorization API (medical-benefit drugs) and NCPDP standards (pharmacy-benefit drugs) beginning October 1, 2027. It also proposes API endpoint reporting, drug prior authorization metrics from 2028 and a specific denial reason for drugs. It is proposed, not final.
No. CMS-0057-F excludes drug prior authorizations from the Prior Authorization API, the decision timeframes and the denial reason requirement. CMS-0062-P is the proposal to extend those policies to drugs.
For QHP issuers on the federally facilitated exchanges, CMS proposes notice to the requesting provider no later than 72 hours for standard drug requests and 24 hours for expedited drug requests. Medicaid covered outpatient drugs already carry a 24-hour timeframe, and CMS proposes 24 hours for CHIP FFS prescription drugs. All with a proposed October 1, 2027 compliance date.
Medicare Advantage organizations, state Medicaid and CHIP fee-for-service programs, Medicaid managed care plans, CHIP managed care entities, QHP issuers on the federally facilitated exchanges, and, newly, small group market QHP issuers on the FF-SHOP exchanges, with a proposed compliance date of plan years beginning on or after January 1, 2028 for the small group issuers.
Checked October 25, 2026. Rules change; confirm against the source before relying on them. Items marked proposed are not final until the final rule publishes.
We add the medical-versus-pharmacy benefit flag, sequence each payer, and log request and decision times so you are ready whether or not the October 2027 date is finalized.