Kaiser, Dignity Health Plan Rally to Protest 10% Cut to Medi-Cal

Several of California's largest healthcare providers are planning a mass demonstration next week after a federal court upheld the state's 10 percent cut to Medi-Cal payments, according to a San Francisco Chronicle report.

Oakland, Calif.-based Kaiser Permanente and San Francisco-based Dignity Health, along with the California Medical Association and Anthem Blue Cross, are planning a demonstration Tuesday in Sacramento. The organizations are urging physicians, dentists, insurance executives, hospital administrators and healthcare workers to attend the "largest-ever health rally at the State Capitol," according to the report.

The rally is in reaction to a 9th U.S. Circuit Court of Appeals decision last week, which upheld a 10 percent rate reduction to Medi-Cal, or Medicaid, providers. That 10 percent represents about $600 million of California's budget.

The cuts were prompted by a budget shortfall, and California Gov. Jerry Brown passed the reductions in 2011. They were then put on hold until the court case could be resolved. Two years later, providers are facing that 10 percent cut, as well as the need to pay back two years' worth of retroactive service fees, according to a California Healthline report.

Provider groups have said they plan to appeal the circuit court's decision to the Supreme Court, according to the report. 

More Articles on Hospitals and Reimbursement:

Value-Based Contracting: From Payer and Provider Point of View
Federal Court Rejects Appeal of 10% Cut to Medicaid in California
Texas Lawmakers Vote to Prohibit Medicaid Expansion


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