California Healthline: CMS Settlement May Have Ripple Effect

by David Gorn

MS officials this week approved a settlement officially halting a 10% Medi-Cal payment reduction from 2011 at California independent living centers. Federal approval came three years after the issue was settled in court.

The state of California settled a series of lawsuits around the independent living centers’ Medi-Cal reductions in 2012, but CMS waited till this week to officially approve the settlements.

“The state’s payments to providers for particular services during the specified period in early 2011 would be at the unreduced Medi-Cal rates rather than the reduced rates as previously approved under the state plan by CMS,” a Mar. 24 email from CMS officials said.

That seemingly innocuous approval has consequences in another high-profile case, according to Lynn Carman, attorney for the independent living centers.

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  • LAAAC is managed by St. Barnabas Senior Services; Funded, in part, by Archstone Foundation.
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