The legislature and Gov. Arnold Schwarzenegger approved the reductions, amounting to at least $175 million annually, to reduce the state’s huge budget deficit.
The court said federal law doesn’t prohibit cuts in Medi-Cal, as Medicaid is called in California, but the state must first conduct a study to determine that the lowered rates would cover the reasonable costs of care.
Read the San Francisco Chronicle’s report on Medi-Cal cuts.
