Court Refuses To Halt 10% Cut To Medi-Cal Payments For Physicians, Dentists

Main Category: Medicare / Medicaid / SCHIP
Also Included In: Primary Care / General Practice;  Litigation / Medical Malpractice
Article Date: 01 Aug 2008 - 9:00 PDT

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A Los Angeles Superior Court judge on Tuesday ruled that the court does not have the authority to block a 10% cut to Medi-Cal and Denti-Cal payments that went into effect on July 1 and that the issue must be handled by the state Legislature or federal government, the San Francisco Chronicle reports. Medi-Cal is California's Medicaid program.

The cut was approved by the California Legislature in February (Colliver, San Francisco Chronicle, 7/31). It reduces spending on the programs by about $1.5 billion to help reduce a fiscal year 2009 state budget deficit that is estimated to be more than $15 billion. State lawmakers have not yet approved a budget, which was due almost a month ago (Rundle, Wall Street Journal, 7/31). A coalition of health care providers in May sued to prevent the cut (AP/San Francisco Chronicle, 7/30). The case was first filed in state court, then moved to federal court and finally was sent back to state court (San Francisco Chronicle, 7/31).

Los Angeles County Superior Court Judge William Highberger in his decision said that the court is "not oblivious to the importance of these issues" but that the "law leaves resolution of this question up to the state Legislature and the federal ... branch" (AP/San Francisco Chronicle, 7/30). Craig Cannizzo, an attorney representing the health care providers, said that the "legal fight isn't over in state or federal court" and that the next step would be to file an emergency appeal with a federal appellate court (Wall Street Journal, 7/31).

Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation.

© 2008 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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