CDA wins court ruling to block Medi-Cal cuts

Judge blocks state attempt to cut Medi-Cal reimbursement rates

CDA is pleased by a federal court ruling that blocks the state from imposing Medi-Cal reimbursement cuts that impact children’s dental services. Judge Christina Snyder issued a final ruling granting a preliminary injunction that prevents the state from reducing reimbursement rates.

In December 2011, the state implemented the 10 percent rate cut despite a motion for the preliminary injunction filed by CDA and coalition partners, including the California Medical Association, the California Pharmacists Association and the National Association of Chain Drug Stores.

The suit was in response to the federal Centers for Medicare and Medicaid Services’ recent approval of the state’s requested cuts for physicians, dentists, pharmacists and other health care providers. The coalition argued that the decision to make reimbursement cuts occurred without supporting data needed to justify the action.

It is expected that providers may not be reimbursed for the difference in any payments made by the state since Dec.15, 2011, that included the 10 percent cut.

In similar cases, the state has announced that it will appeal orders blocking Medi-Cal cuts for hospitals and pharmacies to the U.S. 9th Circuit Court of Appeals.

See previous story: CDA and coalition partners file lawsuit to block Medi-Cal reimbursement cuts