A U.S. District Judge has ordered the state of California to suspend its plans to cease regular rate hikes to the Medi-Cal program until a lawsuit by the California Hospital Association is resolved, according to a Sacramento Bee report.
The injunction prohibits the state from freezing Medi-Cal rates as the result of legislation passed in Oct. 2010. The legislation called for rates to freeze, effective Feb. 1, 2011, at levels paid on either Jan 1, 2010, or July 1, 2010, depending on which was lower. However, the rates never went into effect due to a temporary restraining order on their implementation.
If enacted, the freeze is estimated to cut reimbursements to hospitals by $169 million each year, according to the report.
In his ruling, Judge Frank Damrell said the freeze would cause "irreparable harm" to hospitals and may need federal approval.
Read the Sacramento Bee report on Medi-Cal.
Read more coverage on Medi-Cal:
- California Officials Propose Cap for Physician Visits Covered by Medi-Cal
- California Hospitals to Contribute Over $3B to Fund-Matching Program
The injunction prohibits the state from freezing Medi-Cal rates as the result of legislation passed in Oct. 2010. The legislation called for rates to freeze, effective Feb. 1, 2011, at levels paid on either Jan 1, 2010, or July 1, 2010, depending on which was lower. However, the rates never went into effect due to a temporary restraining order on their implementation.
If enacted, the freeze is estimated to cut reimbursements to hospitals by $169 million each year, according to the report.
In his ruling, Judge Frank Damrell said the freeze would cause "irreparable harm" to hospitals and may need federal approval.
Read the Sacramento Bee report on Medi-Cal.
Read more coverage on Medi-Cal:
- California Officials Propose Cap for Physician Visits Covered by Medi-Cal
- California Hospitals to Contribute Over $3B to Fund-Matching Program