October 7, 2011
Supreme Court and Medicaid
In 2008, Medicaid providers began reducing payments to doctors by 10% in California. (CA) Health care companies and Medicaid clients began suing Medicaid. Now the Supreme Court will determine if such action is legal.
The health care companies and clients feel that the slashes were against federal law. They were enacted to save CA money. The clients and providers stated decreased payments would lead to less companies accepting Medicaid putting care in danger.
The state of CA feels that only the state government and not the Supreme Courts are allowed to rule on rates for Medicaid. They state that unless Congress has documentation of federal courts setting Medicaid rates in the Constitution, state law overrides federal law. This viewpoint wouldn’t allow clients and providers to go to court.
The President and his staff agree with the state of CA regarding this topic. A decision is likely to be reached on this case sometime next year. The case is gaining national attention specifically from activists in the physically/mentally challenged community and those associated with Medicaid.