Certain health care providers in California are preparing for a long legal  struggle over a proposed 10% cut to Medi-Cal reimbursements, Modern Physician reports.

Medi-Cal is California's Medicaid program.

The payment reduction is included in Gov. Jerry Brown's (D) fiscal year 2013-2014 budget proposal  (Robeznieks, Modern Physician, 1/17).

Background on 10% Cut

In October 2011, CMS approved the state's plan to reduce certain Medi-Cal  payments by 10% (California  Healthline, 12/14/12). The state Department of Health Care Services has  estimated that the cut will save the state $431 million (Modern  Physician, 1/17).

According to DHCS, the cut would apply 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.

Payment reductions would be retroactive to June 1, 2011.