CMA Coalition Stops 5 Percent Medi-Cal Rate Cut
[Posted 02/23/06]

The governor Friday signed a CMA-sponsored bill (SB 912) that eliminates the 5 percent Medi-Cal rate cut that took effect January 1.

The cut—the result of a law signed in 2003 by Governor Davis—was scheduled to start January 1, 2004, and sunset January 1, 2007. CMA in 2003 won a federal court injunction blocking the 5 percent cut, arguing that it would harm patients and significantly reduce access to care. Unfortunately, that injunction was overturned in August 2005, opening the door for the state to implement the cut—which it did on January 1, 2006.

CMA and a broad coalition of patient and provider organizations immediately sought emergency legislation to stop the cut and protect access to care for the 3 million poor, children, elderly, and disabled who rely on Medi-Cal for their health care. The bill passed unanimously in both houses of the legislature, and was signed by the governor within 24 hours.

“CMA is pleased that the governor and the Legislature acted so quickly,” says CMA CEO Jack Lewin, M.D. “CMA appreciates that the governor recognizes that cutting Medi-Cal reimbursements is the wrong way to try to control costs in the Medi-Cal program.”

Even without the cut, Medi-Cal rates have not kept pace with inflation, and per-patient Medicaid spending by California ranks last among the 50 states. Low Medi-Cal rates already have forced many physicians to stop seeing new Medi-Cal patients or to leave the program completely. More than 60 percent of Medi-Cal recipients report difficulty finding a physician. Many Medi-Cal patients are forced to forgo care or use hospital emergency departments as their primary health care provider, thereby lengthening waits, increasing costs, and decreasing quality of care for everyone.

CMA is committed to working with the governor, the legislature, and other advocacy groups on Medi-Cal reforms that will improve program efficiencies and control costs, while maintaining access, continuity, and quality of care for Medi-Cal patients.

Contact: Lisa Folberg, 916/444-5532 or lfolberg@cmanet.org.