West Coast Region - Los Angeles

U.S. Supreme Court to decide if California can cut payments to Medi-Cal providers

  • 1.  U.S. Supreme Court to decide if California can cut payments to Medi-Cal providers

    Posted 01-19-2011 02:01 PM
    This message has been cross posted to the following eGroups: Government city county state and other Network and West Coast Region community .
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    The U.S. Supreme Court announced Tuesday that it will decide whether to give California and other cash-strapped states more freedom to cut the amounts they pay doctors, hospitals and other providers of medical care for the poor.

    The case could have a major impact on Gov. Jerry Brown's plans to close the state's massive budget deficit.

    Federal courts previously blocked about $1 billion in Medi-Cal cutbacks adopted by the Legislature in 2008. Brown has proposed trying those cuts again. His budget plan would reduce the amounts the state pays healthcare providers by 10%, which would reduce the program by $719 million.

    Many other states have indicated an interest in making similar cutbacks. Twenty-two states joined California in its appeal to the Supreme Court.

    Attempts in California to trim spending on Medi-Cal and other health programs have repeatedly been tied up in the courts. Former Gov. Arnold Schwarzenegger once criticized federal judges for "going absolutely crazy" in their continued blockage of attempted spending reductions.

    Brown spokeswoman Elizabeth Ashford said the federal courts had been a "roadblock" in allowing California to balance its budget. The issue before the high court, she said, was a matter of "state sovereignty."

    "It's incredibly important," she said of the high court's decision to consider the case. "The fact that they are taking this up indicates that they understand how important this issue is to the state."

    But medical groups said the state's plans would essentially deny healthcare coverage to hundreds of thousands of people by driving doctors from the program.

    Currently, 57% of California doctors accept new Medi-Cal patients, according to a study published last year by the California HealthCare Foundation. That number would drop further if the state reimburses doctors less, said Anthony Wright, executive director of Health Access, a consumer advocacy group.

    About seven million Californians get their health coverage through Medi-Cal.


    more:
    http://www.latimes.com/news/local/la-me-court-medicaid-20110119,0,405868.story

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