CMA Pursuing Legislation to Block Medi-Cal Cuts
[Posted 09/01/05]

CMA is working with legislators to introduce a bill that would prevent the Schwarzenegger administration from implementing the 5 percent cut to Medi-Cal payment rates that was passed as part of the 2003-04 budget.

In 2003, CMA and other health care organizations filed a lawsuit against the California Department of Health Services. It said budget cuts proposed for 2003-04 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 ruled in CMA’s favor and issued an injunction that prevented the cuts from taking place.

Unfortunately, that injunction was overturned in August when 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 plans to appeal this ruling.

California ranks near the bottom of all states when it comes to physician reimbursement. Physicians are paid $22.80 for the average patient visit. Inadequate reimbursement has already forced many physicians out of the Medi-Cal program, and additional cuts would only make the problem worse. Patients unable to find care when they are ill will be forced into emergency rooms, where the cost of care—and eventual cost to the state—is multiplied three or four times.

CMA urges physicians to contact their legislators and ask them to support legislation to stop any Medi-Cal rate cuts.

Contact: David Ford at 866/462-2819 or dford@cmanet.org.