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

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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.

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