News in brief - July 21, 2008

AMA, AHIP run competing ads on Medicare physician pay cut - Pharmacies join legal battle to stop Calif. Medicaid cuts

AMA, AHIP run competing ads on Medicare physician pay cut

The American Medical Association and America's Health Insurance Plans flooded the airwaves in the first week of July arguing opposite sides on legislation that would reverse the 10.6% physician pay cut that went into effect July 1. The AMA ran television and radio advertisements in six states where Republican senators helped block a House-passed measure from moving to a final Senate vote late last month. The spots urged listeners to call lawmakers to reconsider their votes when Congress revisits the issue.

AHIP ran a TV ad urging lawmakers not to approve the House measure, which would pay for the physician pay provision, in part, by slashing payments to Medicare private health plans.

The organization noted that the last time Congress cut the Medicare Advantage program, millions of seniors lost access to their private plans.

Pharmacies join legal battle to stop Calif. Medicaid cuts

California health officials are coming under increasing fire for a 10% across-the-board Medicaid reimbursement cut that took effect July 1.

In the latest move, eight retail pharmacies sued the state in June, saying the Dept. of Health Care Services had implemented the decreases without proper federal approval.

The action came on the heels of a lawsuit the California Medical Assn. -- along with a coalition of hospitals and other health care groups -- brought in May to block the $600 million in payment reductions.

That case is still pending, and a preliminary hearing to address the possibility of an injunction is scheduled for July 25.

Physicians, hospitals and pharmacists fear the cuts will endanger access to health care services and medications if they cannot afford to keep their doors open to patients on Medi-Cal, the state's Medicaid program.