Medi-Cal Reimbursement Rate Reduction Repayment only For Services After Aug 18

An order reversing a 10 percent reduction in Medi-Cal reimbursement rates has been amended. The reduction was for heath care providers, which is now only for services on or after Aug 18. The state is now spared  a lot of money in reimbursements – tens of millions of dollars.

 

Gov. Arnold Schwarzenegger and California lawmakers in February approved the reduction to address the estimate $15.2 bn state deficit. US district judge Snyder issued an injunction requiring Cal to reverse the reduction.

 

It was estimated by state officials that the original injunction would cost the state $500 mn annually. On the basis of the amended ruling the state would save $65 mn and health care providers would lose $130 mn.

 

Lynn Carman who is a lawyer for pharmacists, patients and community organizations wanted Snyders original ruling.