CA AB1985

Requires the Department of Corrections and Rehabilitation to adopt industry standard claim forms for contract health care providers by January 1, 2011.

Mandates the department accept secure electronic submission of claims and provide remote electronic access to claim status information for contract health care providers.

Requires the department to perform periodic audits of claims paid to contract health care providers.

Authorizes the department to adopt policies and procedures for electronic health care claims management without following standard Administrative Procedure Act rulemaking requirements.

Addresses department's history of delayed payments, billing errors, and contractor refunds (over $15 million as of June 2010) by transitioning to electronic claims processing.