Government
Calif. doctors get Medicaid setback
NEWS IN BRIEF — Posted Aug. 18, 2008
A California trial court refused to halt a 10% across-the-board cut in Medicaid payments to physicians and other health care professionals that took effect July 1.
A coalition of doctors, hospitals and other health care organizations -- led by the California Medical Assn. -- had sued the state in May to block the cuts, which Gov. Arnold Schwarzenegger approved in February. The coalition alleged that the reductions violated a federal law requiring Medicaid payments to be sufficient to ensure access to care.
While acknowledging that the more than $600 million in payment reductions will harm the availability of Medicaid services, a Los Angeles County Superior Court judge on July 29 ruled that the coalition did not have the right to sue under federal Medicaid law.
The coalition is considering its appeal options.
Doctors fear that the cuts will exacerbate existing access problems, as low reimbursement rates have forced many California physicians to close their doors to Medicaid patients.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2008/08/18/gvbf0818.htm.
