Associations fail to stop cut

Sunday, November 30, 2008

SACRAMENTO, Calif. - A motion by the California Association of Medical Products Suppliers (CAMPS) and the California Hospital Association for injunctive relief from the state Medicaid program's 10% cut was denied without prejudice in late October. The associations can re-file. A federal judge did not want to make a more definitive ruling in this case until another court rules on an injunction that exempted physicians, dentists and adult day health centers from the cut, according to legal counsel for the associations. The cut is in effect until March 1, 2009; then it's reduced to 1%. CAMPS moved forward with a motion for injunctive relief because it felt "the (state) budget approved (in September) is too fragile and the likelihood of the 10% cut being revisited or extended is real based upon the current economy and budget pressures," the association stated in a newsletter. The state still carries an estimated $4 billion budget shortfall.