CMS OKs California's 10% Cut to Medi-Cal Providers October 27, 2011 Advocacy, CMA, Payment 10% Medi-Cal cut, CMS, Medi-Cal Cut 0 The federal government has granted California permission to make further cuts to Medi-Cal, paving the way for other states to do the same. The Centers for Medicare & Medicaid Services (CMS) will allow the state to cut reimbursement rates by 10 percent this fiscal year for a variety of Medi-Cal providers, including physicians, pharmacists, and optometrists. The state Department of Health Care Services says it will not cut rates paid to pediatricians, home health providers or nursing homes. California Medical Association said Thursday his group will file suit asking the court to immediately block this latest round of Medi-Cal cuts. California, which already ranks among the nation's worst in Medicaid reimbursements, approved 10 percent rate cuts as part of the 2011-12 budget deal. The state initially faced a $26 billion deficit, which lawmakers and Brown resolved by a mix of cuts and an assumption that tax revenues would grow throughout the fiscal year. State leaders also approved mandatory co-payments for Medi-Cal patients, as well as a conditional cap on health care visits. Federal officials have yet to weigh in on those cuts. All told, Medi-Cal cuts add up to $1.7 billion, though not all require federal approval. Providers and patients filed suit against similar rate cuts in previous budgets. Federal courts blocked or reduced those reductions, but the U.S. Supreme Court this month heard arguments on whether outside groups had the legal right to challenge Medicaid cuts. Comments are closed.
