New suit filed to derail Medi-Cal cutbacks

June 12, 2008

Eight community pharmacies have filed suit to stop Medi-Cal reimbursement cutbacks from taking effect on July 1.

Two suits have already been filed to prevent a 10% drop in Medi-Cal reimbursement to pharmacies, but since they were shifted to the federal court at the request of the defendant, a third suit has now been put together. The suit was filed by eight community pharmacies and seeks to derail the Medi-Cal cutbacks from taking effect on July 1. According to Lynn Rolston, CEO of the California Pharmacists Association, moving the preceding two cases to federal court was a stalling tactic designed to ensure that the cutbacks would occur before the legal claims could be heard in court. So in the new litigation, the suit was carefully drafted to include only issues of state law to avoid being banished to federal court. A June 23 hearing has been set.

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