California doctors, governor make deal to stop Medicaid cuts

Doctors also continue to plead their case in court against a reimbursement reduction.

By Mike Norbut, AMNews staff. Oct. 17, 2005.

California physicians are celebrating legislation passed last month that would keep the state's Medicaid reimbursement rates steady.

An agreement between the California Medical Assn. and Gov. Arnold Schwarzenegger gave rise to the measure, which would not cut rates even though a federal appellate court panel decision in August would have allowed the state to reduce reimbursement levels by 5%.

As of press time, the governor had not signed the bill, which was passed by both state houses. Officials from his office did not indicate what his intentions were, but medical association officials anticipated that he would sign the bill.

"We are extraordinarily pleased that Gov. Schwarzenegger has agreed to protect health care for the most vulnerable Californians," CMA President Michael Sexton, MD, said in a statement. "Medi-Cal rates are already low, and further cuts would have devastated this program, which provides care to the neediest."

In August, a three-judge panel of the 9th U.S. Circuit Court of Appeals in San Francisco ruled that Medicaid beneficiaries and their physicians did not have the right as a group to enforce equal access standards under the federal Medicaid law as a way to stop the cuts. Attorneys representing the physicians and Medicaid recipients have filed requests to have the full panel of judges on the 9th Circuit review the panel's decision.