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California may cut Medi-Cal reimbursements, appeals court rules

December 13, 2012 | 10:59 am

A federal appeals court on Thursday ruled that California may cut Medi-Cal reimbursements and lifted  injunctions that had prevented the trims from taking effect.

Earlier this year, U.S. District Court Judge Christina Snyder granted injunctions blocking a 10% cut to Medi-Cal reimbursement rates to healthcare providers. State officials had said the court's injunctions were costing the state more than $50 million a month.

But the 9th U.S. Circuit Court of Appeals in San Francisco ruled the injunction was unwarranted. “Neither the State nor the federal government ‘promised, explicitly or implicitly,’ that provider reimbursement rates would never change,” a three-judge panel of judges concluded.


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