Court denies second hearing on Medi-Cal rate cut

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Updated: 5/24/2013 4:35 pm

SACRAMENTO, Calif. (AP) — A federal appeals court has denied a second request by California doctors, pharmacists and hospitals seeking to undo the state's 10 percent rate cut for treating the poor.

The 9th U.S. Circuit Court of Appeals on Friday denied an appeal from medical providers to rehear their case. A three-judge panel had ruled against them in December.

Paul Phinney, president of the California Medical Association, said in a statement that the decision was expected. But he says health providers will continue to press lawmakers to restore the 10 percent reimbursement rate cut to the state's Medicaid program, known as Medi-Cal.

Friday's decision cements a budget victory for Gov. Jerry Brown.

The governor and Legislature approved the cut two years ago. The administration estimates the move saves about $330 million a year.


©2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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