Appellate court turns down review of Calif. Medicaid reimbursement cuts

SACRAMENTO, Calif. — A federal court has declined to review an earlier decision to uphold cuts to California's Medicaid program, drawing criticism from several groups.

The U.S. 9th Circuit Court of Appeals, whose jurisdiction includes California, turned down a request from the California Pharmacists Association and others for an en banc review of an earlier decision in which a panel of three judges overturned several injunctions against implementation of 10% cuts to reimbursements in the Medi-Cal program passed in 2011 by the state legislature. The CPhA said it was not surprised, but was disappointed at the decision.

"It is absurd to think you can slash reimbursement rates, resulting in pharmacists providing services below their actual costs, while at the same time expanding the Medi-Cal program to 4 million additional beneficiaries under healthcare reform beginning in 2014," CPhA CEO Jon Roth said. "I am astonished that the state thinks this will work."