Government
California Medicaid cuts fuel ongoing litigation
NEWS IN BRIEF — Posted May 25, 2009
Across-the-board cuts to California's Medicaid program have sparked yet another lawsuit.
The California Primary Care Assn. in a lawsuit filed April 30 is challenging the state's decision to eliminate coverage for certain services provided by federally qualified health centers and rural health centers as of July 1.
The move comes on the heels of several other legal actions filed by the California Medical Assn. and a coalition of hospitals and pharmacists to block payment reductions ranging from 1% to 5%. The health care organizations say the cuts, which came as part of a major overhaul under the Legislature's 2009-10 budget, were enacted without proper federal approval.
On at least two occasions, courts have put temporary halts on some of the 2009 payment reductions while the litigation is pending. Doctors, hospitals and pharmacies in August 2008 also won an injunction blocking last year's proposed 10% across-the-board reduction in Medicaid fees.
Physicians and others fear the cutbacks will endanger access to care 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/2009/05/25/gvbf0525.htm.
