Supreme Court To Decide on Medi-Cal Reduction Lawsuit in Spring 2012

On October 3, 2011, the U.S. Supreme Court will hear oral arguments in Douglas v. Independent Living Center of Southern California, a complaint about whether Medicaid recipients and provider organizations have standing to sue the state for reducing Medicaid reimbursement rates and benefits. The court will rule on whether such plaintiffs can maintain a cause of action under the Supremacy Clause of the constitution, which would permit federal Medicaid statutes to trump state law.  A ruling is expected in early 2012. The federal Medicaid Act requires states to adopt a state plan to ensure that payments are sufficient to . . .