SACRAMENTO, Calif. (AP) — A federal appeals court on Thursday affirmed California's right to cut payments made to Medi-Cal providers by 10 percent, a victory that Gov. Jerry Brown's administration says will save the state more than $330 million a year.
The 9th U.S. Circuit Court of Appeals ruled that trial courts cannot block the state from making the cuts that were approved by the U.S. Department of Health and Human Services.
Doctors, pharmacists and other health providers who had sued to try to block the cuts immediately urged the state to reconsider reducing the payments made under the insurance program for the poor and disabled. The groups say they are evaluating their legal options for an appeal.
State lawmakers authorized cuts last year to save money, but a district court blocked the move. At the time it was passed, AB 97 was projected to save $660 million, with half the savings going to the state's general fund. Brown's finance officials say the state could see an additional one-time savings of at least $124 million in the general fund if the cut is applied retroactively to June 2011.
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