California Can Cut Medi-Cal Reimbursements, Court Rules

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California can cut reimbursement rates for medical-care providers in Medi-Cal, the state health program for the poor, a federal appeals court ruled, overturning a lower-court judge who had blocked the reductions.

The U.S. Court of Appeals in San Francisco today said the California Department of Health Care Services and U.S. Health and Human Services secretary acted properly in reviewing and approving the cuts. U.S. District Judge Christina Snyder said last year that the hospital groups and service providers who sued to stop the reductions were likely to succeed.