Government
Pharmacies join legal battle to stop Calif. Medicaid cuts
NEWS IN BRIEF — Posted July 21, 2008
California health officials are coming under increasing fire for a 10% across-the-board Medicaid reimbursement cut that took effect July 1.
In the latest move, eight retail pharmacies sued the state in June, saying the Dept. of Health Care Services had implemented the decreases without proper federal approval.
The action came on the heels of a lawsuit the California Medical Assn. -- along with a coalition of hospitals and other health care groups -- brought in May to block the $600 million in payment reductions.
That case is still pending, and a preliminary hearing to address the possibility of an injunction is scheduled for July 25.
Physicians, hospitals and pharmacists fear the cuts will endanger access to health care services and medications if they cannot afford to keep their doors open to patients on Medi-Cal, the state's Medicaid program.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2008/07/21/gvbf0721.htm.