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.