9th Circ. Says No To Calif. Medicaid Cuts

Law360, New York (March 5, 2010, 3:29 PM EST) -- A federal appeals court has blocked an attempt by the state of California to reduce its Medicaid program payments to adult health care providers, saying the state had not thought enough about the rate cut's effect.

A three-judge panel in the U.S. Court of Appeals for the Ninth Circuit on Wednesday ruled that because the state failed to study the cut's impact on efficiency, economy, quality and access to care, a preliminary injunction against California's proposed 5 percent payment rate reduction is warranted.

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