California Healthline: CMA Petitions Supreme Court To Review 10% Medi-Cal Pay Cut

Last week, the California Medical Association petitioned the U.S. Supreme Court to review a federal court ruling that upheld a 10% cut to Medi-Cal reimbursement rates, Modern Healthcare reports.

Medi-Cal is California’s Medicaid program (Robeznieks, Modern Healthcare, 9/23).

Background on 10% Cut

In October 2011, CMS approved the state’s plan to reduce certain Medi-Cal payments by 10%. The cut will be retroactive to June 1, 2011.

In December 2012, a three-judge panel of the 9th U.S. Circuit Court of Appeals overturned a district court ruling to stop the retroactive 10% cut. Health care providers asked the full 9th Circuit court to review the case. In May, the full circuit court upheld the cut.

Details of Reduction

The cut will start at $917 million for fiscal year 2013-2014 and one year later will increase to $1.4 billion.

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