The state of California has filed a motion seeking to stay a court ruling last week that stopped a 10% Medicaid provider rate cut that went into effect July 1.
California Attorney General Jerry Brown argued in the motion that the state cannot reimburse Medicaid providers as ordered because the ruling interferes with states rights, it would further delay a months-long state budget impasse and deplete the states budget reserves, and cost at least $500 million. A hearing date has been set for Sept. 15 on the matter.
The state says it is working to comply with the Aug. 18 order imposed by U.S. District Judge Christina Snyder of Los Angeles to reverse the reimbursement rate cut to some Medi-Cal providers, as Medicaid is called in the state. Its a very complicated process, said Norman Williams, spokesman of the state Department of Health Care Services. Its not like flipping a switch.
On Thursday, Snyder will hold a hearing on why her order reversing the rate cut has not been complied with yet by the state.
There are three separate pending lawsuits on the 10% rate cut, called for by the governor and approved the state Legislature in February. One lawsuit is being brought by pharmacists, another by physicians, hospitals and other provider groups and the third one, the subject of this latest motion, by the Independent Living Center of Southern California, representing disabled and senior Medi-Cal recipients.
The state will file another motion soon seeking clarification on Snyders order, including the question of which providers are still subject to the rate cut, Williams said. -- by Rebecca Vesely
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