CMA Medi-Cal Lawsuit Moves Forward; Hearing Set for 7/25
[Posted 07/07/08]

Last week, the Department of Health Care Services (DHCS) cut Medi-Cal payment rates by 10 percent. This cut was proposed by the Schwarzenegger Administration and agreed to earlier this year by the State Legislature in an emergency budget session as part of their efforts to address the $15 billion shortfall facing the state.

Because current political dynamics make it unlikely the legislature will roll back the cut, CMA filed a lawsuit in May to stop the state from unlawfully slashing Medi-Cal reimbursement rates. The suit alleges that the state has failed to set rates at a level that ensures Medi-Cal patients have access to physicians and other health care providers. The suit also alleges that the state failed to follow the public hearing process required under state and federal law for changing Medi-Cal rates, instead making the change in secret so that the public had little or no input.

The lawsuit was temporarily delayed when the Attorney General’s office improperly removed the case to federal court in late May. The case has since been remanded back to state court, where the judge has set the hearing for CMA’s preliminary injunction motion for July 25. CMA will also seek retroactive recovery of any discounted payments paid to physicians since the cuts took effect on July 1.

CMA is aware how difficult it was for physicians to participate in the Medi-Cal program prior to the cuts, given the program’s perilously low reimbursement levels. We will continue to fight on behalf of physicians and their patients to make sure physicians are reimbursed fairly for the services they provide to Californians covered by Medi-Cal.

Contact: Contact: Ned Wigglesworth, 916/444-5532 or nwigglesworth@cmanet.org.