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A coalition of health care groups and providers filed a
lawsuit on Monday seeking to block California
from cutting reimbursement rates for Medi-Cal and Denti-Cal providers by 10
percent on July 1.
The $1.3 billion in cuts would put Medi-Cal and Denti-Cal,
safety net programs for the state’s poor, on the verge of a “health-care
catastrophe,” representatives for the coalition said, according to the San
Francisco Chronicle.
Medi-Cal officials say the number of doctors who accept
Medi-Cal patients has been decreasing because the reimbursement rate is lower
than in any other 49 states and the District
of Columbia. “Patients will be left without care. We
are facing a series of cuts that are simply unworkable," said Charles
Guenther, chief executive of the Eastern Plumas Health Care District.
The cuts were approved by the Legislature and Gov. Arnold
Schwarzenegger in February as a way to help reduce a state budget deficit,
currently projected at nearly $20 billion.
The lawsuit, filed in state court in Los
Angeles, says California
has violated state and federal law by failing to ensure that Medi-Cal
reimbursement rates are sufficient for beneficiaries to have the same access to
services as the general public.
The plaintiffs, including the California Medical
Association, the California Hospital Association and the California Association
of Public Hospitals and Health Systems and several other organizations, had
asked the court for an injunction before the cuts go into effect on July 1.
On the other hand, “the governor fully understands the
devastating impact of these cuts, which is why he continues to push for
health-care reform and structural budget reform. Together, they will bring
stability to Medi-Cal budgeting and ensure that the state never has to make
such drastic cuts again,” said Lisa Page, the spokesperson for Mr.
Schwarzenegger.
A small group of health-care providers filed a similar lawsuit in
late 2003, when Mr. Schwarzenegger's predecessor, Gray Davis, proposed a 5
percent cutback in Medi-Cal reimbursements. The reductions were reversed after
a month.
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