California News

Aug 16, 2013 1:53 PM by Associated Press

State cutting reimbursements to providers of medical care for the poor

SACRAMENTO, Calif. (AP) - A long-delayed cut to California's Medi-Cal program for the poor will take place next month - slashing reimbursements to health care providers by 10 percent.

A lawsuit delayed implementation of the cuts proposed two years ago. But the Los Angeles Times says (http://lat.ms/19koCYh ) they'll be phased in beginning next month. Dentists and medical transporters will be hit first, with doctors, pharmacists and nursing facilities avoiding reductions until January.

A federal appeals court in June ruled that the cuts can proceed. The state Department of Health Care Services says they'll save $387 million.

Opponents say the cuts are unnecessary now that California's budget has improved, and ill-timed because they make Medi-Cal less attractive to providers as California expands the program under President Obama's health care overhaul.

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