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San Francisco Marin Medical Society Blog

CMA objects to California's request to slash Medi-Cal rates



On June 30, the State of California submitted an official request to the federal government, seeking permission to implement drastic cuts to the Medi-Cal program.  The state is seeking to slash $14 billion from the program, by implementing a 10 percent provider rate cut, mandatory patient copayments, and a cap of seven physician office visits per year for beneficiaries. The California Medical Association (CMA) has urged the Centers for Medicare & Medicaid Services (CMS) to deny the state’s request to decimate the Medi-Cal program.  CMA believes the proposed cuts are illegal because, among other reasons, they violate federal access standards.  States are required by law to set provider payment rates at a level that ensures Medi-Cal patients have the same access to physicians and other health care providers as the general insured public. California’s Medi-Cal rates are already nearly the lowest in the nation.  Currently, half the doctors in California cannot afford to participate in the program and 56 percent of Medi-Cal patients can't find a doctor.  Unable to find a physician, many Medi-Cal patients are forced to seek care in already over-crowded and increasingly scarce hospital emergency departments, where the cost of care is much higher.  By the time patients end up in the ER, their health conditions have deteriorated and are much more costly to treat. The gaping hole in the safety net will be further exacerbated as there will be 3 million uninsured who will be newly eligible for Medi-Cal in 2014 under the federal health reform legislation.  If these Medi-Cal cuts are allowed to stand, California will not have the provider capacity to care for the influx of new Medi-Cal patients. CMA has been in close communication with CMS on these issues, and will continue to work hard to ensure that all Californians have access to quality care when they need it.


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