The 9th Circuit Court of Appeals won't hear a request led by the California Hospital Association for a full-court review to overturn an injunction that blocked the state Medicaid program from cutting provider reimbursement rates 10 percent, or $600 million each year, according to a report by California Healthline.
California passed the cuts as part of its 2011 budget when it faced a major deficit. Court challenges delayed the change since then, but a three-judge panel reversed an injunction placed on the cuts, requiring providers to retroactively "pay back" the unreduced fees over four years through a 15 percent rate reduction in Medicaid payment, reverting back to the 10 percent reduction after that.
The only other step opposing groups can take now is appealing to the Supreme Court. Provider groups have said that is likely, but the California Hospital Association has not officially stated that will happen, according to the report.
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California passed the cuts as part of its 2011 budget when it faced a major deficit. Court challenges delayed the change since then, but a three-judge panel reversed an injunction placed on the cuts, requiring providers to retroactively "pay back" the unreduced fees over four years through a 15 percent rate reduction in Medicaid payment, reverting back to the 10 percent reduction after that.
The only other step opposing groups can take now is appealing to the Supreme Court. Provider groups have said that is likely, but the California Hospital Association has not officially stated that will happen, according to the report.
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