U.S. District Court Christina Snyder tentatively ordered in a Jan. 30 ruling (pdf) that the California Department of Health Care Service is restrained from reducing Medi-Cal reimbursements, and the associated decision by the Department of Health and Human Service to approve the Medi-Cal cuts is stayed.
HHS and CMS originally approved California's plans to reduce Medicaid reimbursements by 10 percent to physicians, clinics and other providers. The cuts were expected to save California more than $600 million from the state's budget, but Judge Snyder ruled the cuts do not measure how patients' access to care would be impacted nor do they factor the additional costs to provide the care.
Additionally, the ruling said the state's fiscal crisis "does not outweigh the serious irreparable injury plaintiffs would suffer absent the issuance of an injunction," citing other precedent cases.
"The court's tentative ruling is encouraging to those of us practicing medicine," said James T. Hay, MD, president of the California Medical Association, which was one of the plaintiffs. "The state's repeated attempt to slash Medi-Cal reimbursement rates is a short-sighted solution that balances the budget on the backs of the poorest and most vulnerable Californians…the court's tentative decision to block the Medi-Cal cuts means that those patients will still have access to healthcare."
HHS and CMS originally approved California's plans to reduce Medicaid reimbursements by 10 percent to physicians, clinics and other providers. The cuts were expected to save California more than $600 million from the state's budget, but Judge Snyder ruled the cuts do not measure how patients' access to care would be impacted nor do they factor the additional costs to provide the care.
Additionally, the ruling said the state's fiscal crisis "does not outweigh the serious irreparable injury plaintiffs would suffer absent the issuance of an injunction," citing other precedent cases.
"The court's tentative ruling is encouraging to those of us practicing medicine," said James T. Hay, MD, president of the California Medical Association, which was one of the plaintiffs. "The state's repeated attempt to slash Medi-Cal reimbursement rates is a short-sighted solution that balances the budget on the backs of the poorest and most vulnerable Californians…the court's tentative decision to block the Medi-Cal cuts means that those patients will still have access to healthcare."
Related Articles on Medi-Cal:
U.S. District Judge Orders California to Stop Medi-Cal Cuts
California Medical Groups File Lawsuit Over Medi-Cal Cuts
California Hospital Association Sues Over Medi-Cal Cuts