Legal News

Healthcare providers sue state over Medi-Cal cuts

By Jason Siegel

A coalition of the California's most powerful health care providers is suing the state to block the $1.3 billion cut in payments to them for treating people covered by Medi-Cal, the Wall Street Journal reported.

The cut will keep pharmacists from purchasing brand name drugs, because the reimbursement rate is less than the cost of the drug, Paul Lofholm, president of the California Pharmacists Association, told KPBS (LISTEN).

The California Medical Association told KPBS many doctors will refuse to see Medi-Cal patients if the cuts are made. Medi-Cal payments to doctors are the lower than any other state in the county, Dev GnanaDev, the president-elect of the association, told the WSJ.

The suit, filed in Los Angeles yesterday, claims the state violated state and federal law and seeks an injunction on the cuts, which are set to take effect on July 1.

Full post as published by Legal Pad | LA on May 06, 2008 (boomark / email).