As you may recall, the Bush administration has proposed to cut spending on programs like Medicaid, including reducing physician reimbursements. A coalition of local governments and providers in California plans to file a lawsuit to stop these cuts. (Kaiser Network)
San Francisco Mayor Gavin Newsom said that a proposed 10 percent reimbursement reduction could serve as a disincentive to doctors treating patients in Medi-Cal, California’s Medicaid program. He fears patients will seek treatment in hospital emergency rooms, which are already overburdened. The lawsuit, if filed, would claim that Medicaid cuts would unfairly transfer responsibility for coverage to local governments that fund public hospitals.
Governor Arnold Schwarzenegger’s administration said the reduced reimbursement rate is not a long-term solution but one that would ensure beneficiaries remain covered.
