Judge blocks California budget cut to hospitals for Medi-Cal

SacBee: Capitol Alert ^ | 12/30/11 | Kevin Yamamura

[SmithL]

A federal judge has blocked a California state budget cut that would have affected rural patients, the latest indication that courts will have the last word on Medi-Cal reductions.

Gov. Jerry Brown and lawmakers cut reimbursement rates to a variety of Medi-Cal providers by 10 percent to save $623 million in their June budget. Physicians, pharmacists and hospitals, among others, have argued that the cut to California's already low payment rates would discourage providers from accepting Medi-Cal patients and reduce access.

U.S. District Court Judge Christina Snyder issued a preliminary injunction Wednesday blocking the specific rate cut to nursing units within hospitals, many of which are located in rural California. Snyder determined that the California Hospital Association and other plaintiffs had a reasonable argument that the state had failed to appropriately review whether Medi-Cal patients would lose sufficient access to care.

[verity]

You remind us of a reality that freepers too frequently forget. Thanks.