A federal judge has dismissed motions by the Arizona Hospital and Healthcare Association against Arizona Health Care Cost Containment System Director Tom Betlack and HHS Sec. Kathleen Sebelius, related to a five percent cut in the state's Medicaid payments, according to a Yuma Sun report.
The AzHHA argued Director Betlack acted improperly by imposing the cuts, while Sec. Sebelius illegally approved the cuts. The AzHHA asked the court to restore the cuts, which went into effect in October, to previous levels, according to the report. Last year, Arizona lawmakers enacted cuts to the program's funding, giving Director Betlack discretion on the program's budget under the new funding level.
Judge David Campbell did not dismiss claims by the AzHHA that the state's Medicaid program failed to conduct a proper study of hospitals' willingness to provide Medicaid services under the cuts; however, he did not feel the cuts and their current impact warranted an immediate reversal. Federal law requires Medicaid payment rates be sufficient enough to ensure access to care for Medicaid beneficiaries; the AzHHA argued that the current reimbursement rates are so low that the state's program is in violation of the law. Judge Campbell wrote in his ruling that Director Betlack was not absolved from considering cost studies before implementing payment cuts, even though the legislature had required him to reduce program costs.
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The AzHHA argued Director Betlack acted improperly by imposing the cuts, while Sec. Sebelius illegally approved the cuts. The AzHHA asked the court to restore the cuts, which went into effect in October, to previous levels, according to the report. Last year, Arizona lawmakers enacted cuts to the program's funding, giving Director Betlack discretion on the program's budget under the new funding level.
Judge David Campbell did not dismiss claims by the AzHHA that the state's Medicaid program failed to conduct a proper study of hospitals' willingness to provide Medicaid services under the cuts; however, he did not feel the cuts and their current impact warranted an immediate reversal. Federal law requires Medicaid payment rates be sufficient enough to ensure access to care for Medicaid beneficiaries; the AzHHA argued that the current reimbursement rates are so low that the state's program is in violation of the law. Judge Campbell wrote in his ruling that Director Betlack was not absolved from considering cost studies before implementing payment cuts, even though the legislature had required him to reduce program costs.
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