According to the Sacramento Bee (via Medical News Today), California has not been complying with a law that requires the Medi-Cal director to review physician reimbursement rates every year.
According to Sandra Shewry, director of the California Department of Health Care Services, the 1976 law is obsolete, passed when health care spending “made up a smaller portion of the state budget and the health department made annual recommendations for adjustments in the rates.” The review requirement was intended to keep reimbursement rates competitive.
Apparently, current rates are not competitive. Medi-Cal reimbursement rates for physicians are the lowest of any state Medicaid program, according to the California Medical Association. Last month, a coalition of local governments and providers in California announced an intent to file a lawsuit to stop a proposed 10 percent reimbursement rate cut for physicians under the Medi-Cal program.
Also see California Coalition Will File Suit to Stop Medicaid Cuts.
