Lawsuit aims to stop Medi-Cal cuts

May 12, 2008

The largest California independent living center, two pharmacies, and two Medi-Cal recipients sued Medi-Cal to set aside plans to cut reimbursement

Uptown Pharmacy and Gift Shop and Central Pharmacy, both based in the Los Angeles area, have joined with a nursing facility and an advocacy group in a suit to stop the state of California from instituting a 10% across-the-board cut in payments to Medi-Cal providers. The cuts, which are set to go into effect in July, are part of an effort to cover an estimated $10 billion, for the next fiscal year. The City of San Francisco has also stated that it may challenge the cuts. Joining the two pharmacies in the suit were the Independent Living Center of Southern California, a nursing facility; and the Gray Panthers, an advocacy group. The suit also sought to stop the state from suspending for four months its share of payments to poor recipients. According to the complaint, a reduction in payments would cause many healthcare providers to stop taking Medi-Cal patients.