U.S. District Judge Christina Snyder wrote in the 25-page tentative ruling (PDF) that the groups that brought the lawsuit have a strong likelihood of succeeding in the argument that the CMS approval was “arbitrary and capricious.” California officials argued that providers don't have standing to sue to enforce federal requirements. Snyder ruled they do unless the U.S. Supreme Court rules otherwise in another California Medicaid case heard in October.
“The state's repeated attempt to slash Medi-Cal reimbursement rates is a short-sighted solution that balances the budget on the backs of the poorest and most vulnerable Californians,” Dr. James Hay, president of the California Medical Association, said in a news release.
In addition to the medical association, the plaintiffs in the case are the California Dental Association, the California Pharmacists Association, the National Association of Chain Drug Stores, the California Association of Medical Product Suppliers, AIDS Healthcare Foundation, American Medical Response West, Medi-Cal beneficiary Jennifer Arnold, and 25 unnamed Medi-Cal beneficiaries.
Earlier this month, Snyder issued a preliminary injunction blocking similar cuts to hospital-based skilled-nursing in a separate lawsuit brought by the California Hospital Association.
