government
Judge halts California Medicaid cut to nursing homes
NEWS IN BRIEF — Posted Jan. 16, 2012
A California judge on Dec. 28, 2011, blocked the state's plan to cut Medicaid rates to skilled nursing facilities that are part of acute care hospitals, after a lawsuit by the California Hospital Assn.
The Centers for Medicare & Medicaid Services in late October 2011 approved a 10% rate reduction to the skilled nursing facilities, which would be retroactive to June 1, 2011. However, the CHA said the cuts would end up being closer to 20%, because they are based on payment rates from 2008 and 2009.
In her opinion, U.S. District Judge Christina Snyder said CMS "failed to consider whether [California] relied on responsible cost studies" before approving the state's request to slash payments to hospitals and health care professionals. The judge concluded that the state's plan to monitor access to care in light of the payment cuts would not prevent Medicaid patients from being harmed (link).
The state plans to appeal the ruling.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2012/01/16/gvbf0116.htm.
