On Tuesday, U.S. District Court Judge Christina Snyder granted a preliminary injunction to block a 10% cut to Medi-Cal reimbursement rates, the Los Angeles Times' "PolitiCal" reports. Medi-Cal is California's Medicaid program.
Snyder said the payment cuts could cause irreparable harm.
Earlier this week, Snyder issued a temporary ruling to block the cuts (Megerian, "PolitiCal," Los Angeles Times, 2/1).
Background
In October 2011, CMS approved the state's plan to reduce certain Medi-Cal payments by 10%. State officials have projected that the cuts will save $623 million.
According to the Department of Health Care Services, CMS allowed the state to make a 10% reimbursement cut to:
- A number of providers and outpatient services, including clinics, dentists, laboratories, optometrists and pharmacists; and
- Freestanding nursing and adult subacute care facilities, as well as other nursing facilities.
The cuts would be retroactive to June 1, 2011.
In December 2011, Snyder blocked Medi-Cal reimbursement cuts to hospital-based skilled nursing care, pharmacy and managed care services.
Snyder's latest ruling stems from a lawsuit challenging the cuts filed by a number of health care organizations, including the California Medical Association, the California Dental Association and the California Pharmacists Association (California Healthline, 1/31).
Ruling Details
The ruling prevents the state from cutting Medi-Cal reimbursements to dentists, pharmacists, physicians and other Medi-Cal providers (Robertson, Sacramento Business Journal, 2/1).
In her ruling, Snyder said the cuts could violate federal law.
She added, "The state's fiscal crisis does not outweigh the serious irreparable injury plaintiffs would suffer absent the issuance of an injunction" ("PolitiCal," Los Angeles Times, 2/1).
State Appeal
H.D. Palmer, spokesperson for the state Department of Finance, said the state will appeal Snyder's ruling (Sacramento Business Journal, 2/1).
Broadcast Coverage
On Wednesday, Capital Public Radio's "KXJZ News" reported on Snyder's ruling (Adler, "KXJZ News," Capital Public Radio, 2/1).