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01/07/2013

CDA reviewing court ruling on Medi-Cal rate cuts

Court clears way for state to cut rates

CDA and a coalition of health care organizations are considering legal options after a court ruling overturned injunctions that blocked the state from reducing Medi-Cal reimbursement rates by 10 percent.

A three-judge panel of the 9th U.S. Circuit Court of Appeals  overturned the injunctions, which effectively allows the state to implement a 2011 law that cuts Medi-Cal reimbursements to dentists, physicians, pharmacists and other Medi-Cal providers.

The U.S. Centers for Medicare and Medicaid Services had approved the state’s rate reduction in late 2011, despite arguments by the coalition that the cuts would negatively impact patients and their ability to access care.

These cuts will have an even greater negative impact on vulnerable Californians if implemented at this time, as the state seeks to shift 875,000 into the Medi-Cal program from the Healthy Families program in 2013.  

CDA joined the lawsuit with the following organizations: California Medical Association, California Pharmacists Association, National Association of Chain Drug Stores, California Association of Medical Product Suppliers, AIDS Healthcare Foundation, and American Medical Response.