Appeals court hears Calif. Medi-Cal reimbursement cuts case

A coalition of organizations that has been protesting proposed cutbacks to California's Medicaid reimbursement system continues to work to block the state from cutting Medi-Cal reimbursement rates by 10%, according to a news story on drugstorenews.com.

The coalition includes the California Dental Association (CDA), California Medical Association (CMA), California Pharmacists Association, National Association of Chain Drug Stores, California Association of Medical Product Suppliers, AIDS Healthcare Foundation, and American Medical Response.

In October 2011, the U.S. Centers for Medicare and Medicaid Services approved a state proposal to reduce Medi-Cal provider reimbursements by 10% in the 2012 fiscal year, retroactive to June 1, 2011.

The rate reductions were authorized by California Assembly Bill 97, which was signed by Gov. Jerry Brown in June and required federal approval of all Medi-Cal budget reductions prior to implementation.

In January 2012, a federal court issued the decision to block California state officials from moving forward with a 10% cut to Medi-Cal payments, according to the CMA.

With regard to Medicaid dental services, "The state's attempt to cut reimbursement rates would negatively impact patients and their ability to access care," CDA President Daniel Davidson, DMD, said in the story. "Most adult Denti-Cal services have been eliminated, and the state's effort to make further cuts to children's services would be devastating to their oral health."

Following the court's ruling earlier this year, the state appealed the decision, and the case was heard this week by the U.S. Ninth Circuit Court of Appeals.

A ruling on the hearing is expected later this year or in early 2013, the story concluded.