Appeals Court Rules Against CMA in Medi-Cal Rate Case
[Posted 08/04/05]

CMA this week received a disappointing federal appeals court ruling that reverses a lower court ruling that prevented a 5 percent Medi-Cal rate cut in 2004-05.

A panel of the U.S. 9th Circuit Court of Appeals in San Francisco found that “neither Medicaid recipients nor providers have a private right to challenge California’s compliance with Medicaid.”

CMA is reviewing this case and considering an appeal. The decision affects nine states and territories under the appeals court’s jurisdiction and has nationwide implications.

The suit was filed in fall 2003 by CMA and other health care organizations against the state California Department of Health Services. It said budget cuts proposed for 2004-05 were illegal because the state did not follow federal Medicaid law in considering how hundreds of millions of dollars in reductions would affect access to care for poor, disabled, elderly, and children whose health care is provided by Medi-Cal. A federal district judge then ruled in CMA’s favor and issued an injunction that prevented the cuts from taking place.

Click here for a copy of the appeals court ruling.

Contact: Karen Nikos, 916/551-2069 or knikos@cmanet.org.