California Court Stops Pharmacy Reimbursement Cuts

A Federal District Court in Los Angeles ordered the state of California to stop the 10% cuts in Medi-Cal reimbursement payments to health care providers, the National Association of Chain Drug Stores reported yesterday.

ALEXANDRIA, Va. — A Federal District Court in Los Angeles ordered the state of California to stop the 10% cuts in Medi-Cal reimbursement payments to health care providers, the National Association of Chain Drug Stores, here, reported yesterday. Medi-Cal is the name of the state’s Medicaid program. The court found that pharmacies and other Medi-Cal providers and patients were being irreparably harmed as a result of the cuts. Pharmacies were losing money on nearly every Medi-Cal transaction, and many pharmacies have been forced to turn away Medi-Cal patients, NACDS said in a statement. In addition to pharmacies, the court’s order includes relief for physicians, dentists, adult day health care centers, clinics, health systems and other health care providers and applies to services rendered on or after July 1, 2008. “This case has been a rollercoaster ride since the beginning,” said Lynn Rolston, chief executive officer of the California Pharmacists Association, Sacramento. “We are grateful for this much-needed and timely victory. The judge has saved the day for patients and for the pharmacy network in California.”

Read More of Today's Headlines [2]