Thread: Health care groups sue California for planned Medi-Cal cuts

May 5, 8:52 PM EDT


Health care groups sue California for planned Medi-Cal cuts

By SHAYA TAYEFE MOHAJER
Associated Press Writer

LOS ANGELES (AP) -- A broad coalition of health care groups sued the state of California on Monday, hoping to stop 10 percent cuts to Medi-Cal and Denti-Cal reimbursements from taking effect July 1.

The lawsuit, which seeks class-action status, was filed in Los Angeles County Superior Court on behalf of California health care providers and seeks an injunction to halt the cuts.

"Without Medi-Cal funding, public hospitals cannot survive. These specific cuts strike at the core of the safety net," said Erica Murray, vice president of the California Association of Public Hospitals and Health Systems. "These are the trauma centers, the burn units, the places where people go not only when they don't have insurance or they have Medi-Cal, but if they have an automobile accident, their house burns down or another tragic event."

Murray's group is part of a broad coalition that includes the California Medical Association, the California Hospital Association, the California Dental Association, the California Association for Adult Day Services, the American College of Emergency Physicians and the California Pharmacists Association.

The groups say they already don't get enough reimbursement from the Medi-Cal program to cover their costs.

Medi-Cal provides health care services for 6.7 million poor, elderly and disabled Californians. It is projected to cost $38 billion next year.

As part of Gov. Arnold Schwarzenegger's plan to trim a $16 billion budget deficit, in February the state Legislature approved the cuts to the reimbursement rates paid to doctors who treat Medi-Cal patients.

"The governor fully understands the devastating impact of these cuts which is why he continues to push for comprehensive health care reform and structural budget reform," said Lisa Page, a spokeswoman for Schwarzenegger. "Together these will bring stability to Medi-Cal budgeting and ensure that the state never has to make such drastic cuts again."

In 2003, a similar lawsuit halted another proposed cut to Medi-Cal, a 5 percent cut proposed under Gov. Gray Davis.

"We are very optimistic that, much as it occurred last time, we will be able to enjoin this rather illegal ... measure that reflects the view that the Medi-Cal program is a pot of money that they can steal from any time," said Craig Cannizzo, the coalition's lawyer.

Further cuts will only exacerbate an already flawed system, according to California Medical Association President-elect Dr. Dev GnanaDev.

"The cost of providing care to patients is actually higher than what the Medi-Cal reimbursements are," said GnanaDev.

Among other drawbacks, the health care groups say Medi-Cal cuts would result in an unsavory domino effect: If the state refuses to pay health care providers adequately, doctors may refuse more Medi-Cal patient office visits, and those patients may end up seeking more expensive emergency care.

GnanaDev, who also serves as the medical director of the Arrowhead Regional Medical Center in Colton, said Medi-Cal will typically reimburse office visits up to $50, but an emergency room visit is reimbursed for about $400.

Last week a renal failure patient was admitted to GnanaDev's hospital after coming to the emergency room as a last resort when she couldn't find a doctor who would treat her clogged catheter on Medi-Cal, he said.

As a result, she'd suffered more pain, endangered her health and would incur higher cost to the state in the end, he said.

GnanaDev said cases like hers are not uncommon.

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This crap is just mind numbing . Sue em , their broke . They gave the store away . The Arnoldnator is a piece of work CA . Ya'll voted that sucker in office Soooo !!!