CA AB512

Reduces prior authorization decision timelines for health care service plans and disability insurers to 3 business days for electronic submissions or 5 business days for non-electronic submissions, down from the previous 5 business day standard

Requires urgent prior authorization decisions (when enrollee faces imminent health threat) to be made within 24 hours for electronic submissions or 48 hours for non-electronic submissions, reduced from the previous 72-hour requirement

Excludes Medi-Cal managed care plans from the new expedited timelines, keeping them at the existing 5 business day standard and 72-hour urgent deadline

Defines "electronic submission" as submission through a plan-designated portal or in accordance with Health and Safety Code Section 130290 and federal interoperability rules

Authorizes the Department of Managed Health Care and Insurance Commissioner to assess administrative penalties for plans or insurers that fail to meet the required timeframes