(California) can't cut Medi-Cal fees, court rules

[Newsjock]

Source: San Francisco Chronicle

California acted illegally by trying to cut Medi-Cal fees by 10 percent last year for doctors, pharmacists and others who treat 7.1 million poor people, a federal appeals court ruled Thursday.

The decision by the Ninth U.S. Circuit Court of Appeals in San Francisco was a victory for health professionals and their patients but a blow to the state, which is mired in a $26.3 billion budget deficit. Gov. Arnold Schwarzenegger and state legislators have imposed further Medi-Cal reductions this year, which could be thwarted by the ruling.

... In Thursday's 3-0 decision, the court said California had violated a federal law that requires states to set rates at levels that will pay for quality care and lead to equal access to health services for poor people. The federal government pays half the costs of the Medicaid program, which is called Medi-Cal in California.

... "We do not doubt the severity of the fiscal challenge facing the state of California," Judge Milan Smith said in the court ruling. But, he added, "a budget crisis does not excuse ongoing violations of federal law."

... The court also broadened a judge's ruling against the state last year by adding seven weeks of retroactive payments.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/07/09/BADQ18LOCC.DTL&tsp=1

[marketcrazy1]

1. lol!!

what a cluster fuck!!! the banks are going to stop taking the IOU`s tomorrow but the SEC just said they will be regulating them as securities so they can be traded! when those IOU`s start trading for 70 or 80 cents on the dollar the fun is really gonna start!

[bemildred]

2. Or what?

What happens if California says "F**K YOU" to the federal court?

Is there anybody else that thinks that "pay for quality care and lead to equal access to health services for poor people" is not something you can do with a court ruling?

[madmusic]

3. What are you saying?

Should California give up the fed funds and pay back every penny that was against the law and cut all funding for poor health care?

Is that your solution?

[bemildred]

4. I think we should give them IOUs. nt

[geckosfeet]

5. What a totally fucked up state. I used to admire them - that was way before Ahhnold.