California cannot cut Medi-Cal reimbursements to hospitals and pharmacies by 10 percent as planned, according to a U.S. District Court ruling. The decision was issued last week by Judge Christina Snyder. It followed plans to reduce payments by 10 percent to clinics, dentists, outpatient health care providers, optometrists, pharmacists, and nursing homes, including skilled nursing facilities inside acute care hospitals. The state would have saved $623 million with the cuts, state officials have said. The federal Centers for Medicare and Medicaid (CMS) permitted the cuts to go into affect. But the California Hospital Association petitioned the federal district court of Los Angeles in November to stop the cuts for skilled nursing facilities housed inside acute care hospitals. The state Department of Health Care Services plans to appeal the ruling. Judy Temes
