In October 2011, HHS and CMS approved a state plan in which California would reduce Medicaid rates by 10 percent to physicians, pharmacists, skilled nursing facilities and other providers. The plan was expected to save the state $623 million per year.
However, providers appealed, and U.S. District Court Christina Snyder tentatively blocked the cuts, ruling in favor of the providers. California appealed to the Ninth Circuit, which gave its decision last week. The appeals court said the HHS secretary has the “authority to determine whether a state’s Medicaid plan complies with federal law,” according to the report.
It is uncertain if California officials will move forward with the plan. California is also one of the many states that plans to expand its Medicaid program.
More Articles on California Medicaid:
Supreme Court Sends California Medicaid Case Back to Appeals Court
HHS Blocks Medicaid Co-Pays in California
Federal Judge Tentatively Blocks Medicaid Cuts in California
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