California gets go-ahead to cut Medicaid payments to providers by 10%

Share this article:
Gov. Jerry Brown (D-CA)
Gov. Jerry Brown (D-CA)

The Obama administration has approved a request to cut Medicaid payments to California healthcare providers, including nursing homes, by 10%, which will mean $623 million in less reimbursement over the next two years.

Although Gov. Jerry Brown (D) voluntarily withdrew several proposed cuts, the batch approved by the Centers for Medicare & Medicaid Services includes a 10% reduction in payments to nursing homes, dentists, pharmacies and physicians, the Los Angeles Times reported. In asking for approval of the cuts, Brown was seeking to close the country's largest budget gap of $26.6 billion.

Opponents to the cuts, including California Rep. Lois Capps (D) call reduction in payments “untenable,” The Hill reported. Healthcare advocates who oppose the cuts have taken their case to the Supreme Court, which is expected to rule next year on patients' and doctors' rights to sue over Medicaid payments.

Share this article:
close

Next Article in News

More in News

CMS expands therapy payment research

The government is expanding its research into alternative therapy payments, to consider more holistic changes to the way Medicare reimburses skilled nursing facilities, the Centers for Medicare & Medicaid Services announced Tuesday.

CDC tightens Ebola guidelines for healthcare workers

The Centers for Disease Control and Prevention has issued more stringent guidelines for how healthcare workers should interact with Ebola patients, following an outcry from nurses and other professionals.

Nonprofit providers face alarming market forces, must rally, LeadingAge chairman says

Nonprofit providers face alarming market forces, must rally, ...

Nonprofit long-term care providers must work together to address alarming trends, or their market share could plummet and the sector as a whole could falter, LeadingAge Chairman David Gehm told ...