State Can't Cut Medi-Cal Fees, Court Rules [Breaking News]

SFChronicle ^ | July 09, 2009

[Steelfish]

State can't cut Medi-Cal fees, court rules

SAN FRANCISCO -- California acted illegally by trying to cut Medi-Cal fees by 10 percent last year for doctors, pharmacists and others who treat 7.1 million poor people, a federal appeals court ruled today.

The decision by the Ninth U.S. Circuit Court of Appeals in San Francisco was a victory for health professionals and their patients but a blow to the state, which is mired in a $26.3 billion budget deficit. Gov. Arnold Schwarzenegger and state legislators have imposed further Medi-Cal reductions this year, which could be thwarted by the ruling.

"The cuts that the governor is attempting will also be stopped," said Lynn Carman, a lawyer for pharmacists who sued the state. He called the ruling "a victory for Medi-Cal beneficiaries who the governor has been trying to eradicate for the last two years."

State officials had no immediate comment.

The ruling requires the state to reimburse doctors, dentists, pharmacists, clinics and adult day health care centers by the amounts that the state cut from their fees July 1, 2008. The reductions expired March 1, when smaller cuts for various Medi-Cal providers took effect, prompting another round of lawsuits.

The state has estimated that a 10 percent fee reduction would save California $500 million a year.

[Cyman]

“California had violated a federal law that requires states to set rates at levels that will pay for quality care and lead to equal access to health services for poor people.”

So they are saying the previous reimbursement rate fulfills the requirement for this statement “ rates at levels that will pay for quality care”? MediCal reimburses physicians at rates that are 12-18% of Usual and Customary so by suing the Governator the plaintiffs are ACKNOWLEDGING those rates as being adequate. Idiots!

[pissant]

How about canceling the frickin thing altogether.

[Da Coyote]

Sooner or later, even ill-educated dim-bulb-crats are going to read the 14th amendment - and thereafter tell the US Supremes to go and Obama themselves.

[Melchior]

Next step: Supreme Court. Result: The truly pathetic 9th will once again be reversed.

[Melchior]

Next step: Supreme Court. Result: The truly pathetic 9th will once again be reversed.

[Mariner]

This will make the deficit in the state worse.

This is good news as it hastens the day we finally go bankrupt...which puts us on the road to recovery.

[Mister Da]

CA is the perfect liberal meltdown. They pass entitlements during boom years, then can't cut them during a bust. The Lib dominated legislature will not repeal anything, so the spending is locked in regardless of revenues.

The perfect preview of things to come for the nation. Maybe the collapse of CA will open enough eyes to stop Obama before he does the same thing to the whole country.