Federal Appeals Court Approves California’s 10% Medicaid Provider Rate Cut

On December 13, 2012, a federal appeals court approved California's plans to reduce Medicaid provider rates by 10%. The ruling came in Managed Care Pharmacy, et al., v. Sebelius; the court affirmed the power of the federal government to determine whether a state’s Medicaid plan complies with federal law and found that the California Department of Health Care Services (DHCS) does have authority to reduce Medicaid rates. Generally, payments to the following provider types will be affected by the ruling: emergency and non-emergency medical transportation, pharmacy, durable medical equipment and supplies, physicians, dental, clinics and distinct part . . .