Feds Support States' Right to Cut Medicaid Payments

Federal regulators filed a brief with the 9th U.S. Circuit Court of Appeals in San Francisco that supported California's efforts to cut Medicaid payments to providers by 10 percent, according to a report by the New York Times.

The cuts were proposed in 2011 when the state was still reeling from a budget crisis and was taking austerity measures to balance its books. HHS Secretary Kathleen Sebelius approved those cuts that year because the cuts would not hurt Medicaid beneficiaries' access to care.

The federal brief argued the cuts should be upheld by the courts as an appropriate measure states may take to tamp down healthcare spending, despite outcries from patients and providers.

More Articles on Medicaid Spending:

Missouri Committee Blocks Medicaid Expansion
9 Ingenious Ways to Cut Costs at Your Hospital
3 Sure-Fire Ways to Kill a Patient-Centered Culture

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