A coalition of health care providers, including the doctors, dentists and hospitals, will announce a lawsuit to prevent the Legislature and governor from cutting reimbursement rates for health providers by 10 percent.
Gov. Arnold Schwarzenegger proposed the 10 percent Medi-Cal reimbursement cut when he unveiled his January budget. Lawmakers approved the cuts as part of the mid-year budget spending cuts.
The cuts represent the largest mid-year reductions lawmakers agreed to.
San Francisco Mayor Gavin Newsom, speaking to the Sacramento Press Club earlier this year, complained reimbursement rates - the amount paid to providers for medical treatments for Medi-Cal patients - have lagged behind federal standards. He threatened a lawsuit in his appearance.
Today's health coalition announcing the suit includes the California Medical Association, California Hospital Association, California Dental Association, California Association for Adult Day Services, American College of Emergency Physicians, Cal. Chapter, California Pharmacists Association and California Association of Public Hospitals and Health Systems.
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