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CMA Pursuing Legislation to Block Retroactive Medi-Cal Cuts
Schwarzenegger to Cut Medi-Cal Rates on January 1
[Posted
12/12/05]
California’s neediest patients and their physicians will get a lump of coal for the holidays if the Schwarzenegger administration follows through with its plan to cut Medi-Cal payments by 5 percent on January 1.
State officials have confirmed that a notice announcing the rate cut was mailed today to physicians and other providers.
CMA is working to persuade the administration that the cuts will damage the fragile Medi-Cal system and cost money by disrupting care for the state’s poor.
Background
In response to a state budget crisis, the Legislature in 2003 passed a 5 percent Medi-Cal payment cut as part of the 2003-04 state budget. The cut was to be effective on January 1, 2004, and sunset on January 1, 2007.
But, CMA in 2003 won a federal court injunction blocking the 5 percent cut. Unfortunately, that injunction was overturned in August 2005 by the 9th Circuit U.S. Court of Appeals in San Francisco. The ruling opened the door for the administration to immediately reduce Medi-Cal reimbursement rates by 5 percent retroactive to January 2004.
The cuts were delayed, however, as CMA worked with the state legislature and the Governor to pass legislation to prevent implementation of the cuts through December 31, 2005. CMA will be sponsoring urgency legislation to stop this latest attempt to cut Medi-Cal payments in 2006.
CMA Mounts Aggressive Response
CMA has begun an aggressive campaign to change the administration’s mind. CMA late last week called an emergency meeting of “Californians United for Quality Health,” a coalition of more than 50 health care advocacy groups created several years ago by CMA to fight Medi-Cal cuts. CMA and the coalition will aggressively fight to prevent the cuts through legislative, legal, and media campaigns.
You Can Help Prevent the Medi-Cal Rate Cut
Help stop the Medi-Cal payment cut by phoning or sending letters to the Governor, and to your senators and assembly members. Help stop the Medi-Cal payment cut by phoning or sending letters to the Governor, and to your senators and assembly members. Let lawmakers know that California physicians will not tolerate Medi-Cal payment cuts. Remind them that California ranks near the bottom of all states when it comes to physician reimbursement, and that inadequate reimbursement has already forced many physicians out of the Medi-Cal program. Additional cuts will only make the problem worse.
Contact the Governor:
Gov. Arnold Schwarzenegger
State Capitol Building
Sacramento, CA 95814
Phone: 916/445-2841
Fax: 916/445-4633
E-Mail: Click Here
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