A California state court has dashed the hopes of the state's providers, ruling that the state's new 10 percent cut in its Medicaid should move ahead. A group of powerful medical associations, including the California Medical Association and the California Hospital Association, had sought a preliminary injunction to stop the cut. In its ruling, the court found that even though the plaintiffs had shown that actual patient harm could result from the cut, federal law bars private parties from suing over rate cuts to Medi-Cal, as the state's Medicaid program is known.
Not everyone's been shot down, however. The California Pharmacists Association, which filed a separate suit, is also hoping to stop the rate cut. Meanwhile, the California Medical Association is considering filing an emergency appeal with an appellate court. Also, a state legislative committee has recommended shrinking the Medi-Cal cuts, though the recommendations wouldn't take effect unless the full legislature and governor pass a budget including those changes.
To learn more about this conflict:
- read this California Medical Association press release
- read this Modern Healthcare article (reg. req.)
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