CMA Reaches Deal with Governor to Protect Medi-Cal
[Posted 09/08/05]

CMA today reached a firm agreement with the Schwarzenegger administration not to cut Medi-Cal physician reimbursement rates this year, despite a recent court ruling that would have allowed those cuts. The Governor also agreed to work with CMA to avoid Medi-Cal rate cuts in future years.

“We are extraordinarily pleased that Governor Schwarzenegger has agreed to protect health care for the most vulnerable Californians,” says CMA President Michael Sexton, M.D. “Medi-Cal rates are already low and further cuts would have devastated this program, which provides care to the neediest.”

In 2003, CMA won a federal court injunction blocking the 5 percent Medi-Cal rate cut that was passed as part of the 2003-04 budget. 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.”

The court ruling, which CMA is appealing, opened the door for the administration to cut Medi-Cal reimbursement rates by 5 percent. To prevent such cuts, CMA is sponsoring a bill (AB 1735) that would prevent the administration from cutting rates in the current budget year and harming California’s Medi-Cal patients. With overwhelming support of physicians throughout California, the bill attracted wide bipartisan support in both houses of the legislature. Governor Schwarzenegger on Thursday told CMA officials that he will support the bill and that he will work cooperatively with CMA to avoid cuts in the future.

California already 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 worsen the problem. 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.

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