Legal Delay Tactics by State Undermine CMA Chance to Stop the 10% Medi-Cal Cut before it Takes Effect July 1
[Posted 06/23/08]

On May 5, CMA and a coalition of health care providers filed a class action lawsuit seeking to stop the state from unlawfully slashing Medi-Cal payment rates by 10 percent. The suit was filed in state court and seeks injunctive relief to prevent the implementation of the illegal rate cut.

The first hearing in the case is scheduled for today, June 23, in federal district court in Los Angeles. The case is in federal court because the Attorney General’s Office removed the case from state court in the hopes that the 10 percent rate reduction would take effect before the merits of the case could be heard. Removal is automatic, and postpones any hearing of the merits of the case, so is an effective delay tactic. On Monday, the federal court must rule on CMA’s motion to remand the case back to state court so that the state court can consider our motion to stop the cuts. 

CMA’s legal team intends to file motions to expedite the judicial process so that we can stop the cuts prior to their July 1 effective date. However, there is a significant possibility that we may not get a hearing until late July. If we are unable to stop the cuts before they take effect, CMA will request that the judge enjoin the cuts retroactively, so that physicians receive no reduced reimbursement for Medi-Cal services provided.

Once the merits of our lawsuit are finally heard, CMA is fairly confident in our ability to stop the cuts. The perceived strength of our case was reflected by a recent action by the Senate Budget Committee, which reduced the 10 percent cut to a 5 percent cut in an effort to lessen the financial blow to the state when we win.

CMA continues to work on other fronts to stop the cuts. We have been working with the media and legislators to educate them and the public about the severe impact these cuts will have on the health care system in California.

Stay tuned for more information.

Contact: Samantha Pellon 916/551-2872 or spellon@cmanet.org.