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Budget Cuts Threaten Access to Medicine

The state budget, which takes effect July 1, reduces the amount the state will reimburse pharmacies for prescription drugs covered by Medi-Cal.  These cuts could force pharmacies to stop serving Medi-Cal patients because they would lose money on so many drugs.  Pharmacies that serve a large number of Medi-Cal patients might find it impossible to stay in business, which would impact the entire community, including those who are not on Medi-Cal.

 

The budget cuts scheduled to take effect on July 1 threaten the health of Californians and will increase the cost of healthcare for taxpayers.  Pharmacists cannot stay in business if they are forced to sell medicines at a loss.  If Medi-Cal patients lose access to their medicines, they could become sicker and end up in the emergency room or back at the doctor’s office at a higher cost to taxpayers. 

 

On this site, you’ll find more information on the proposed budget cuts and how they will affect the health of Californians.  If you agree these cuts are bad for our state, contact your legislators to make your views known.

 

Ninth Circuit Allows Lawsuit Against Medi-Cal Rate Cut to Proceed

Friday, September 19, 2008
A panel of the Ninth U.S. Circuit Court of Appeals ruled yesterday that a group challenging a state law reducing payments to medical service providers under California's Medicaid program by 10 percent can proceed with a suit to enjoin the law's implementation.  more...

Pharmacists may sue to stop reductions in payments

Wednesday, September 17, 2008
A lawsuit brought by pharmacies and others challenging a California law ordering a reduction in payments under the state's Medi-Cal program can go forward, the 9th U.S. Circuit Court of Appeals says in a ruling issued Wednesday.   more...
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255,802 signatures and counting

August 20, 2008

Victory!

On August 19, a federal district court judge in Los Angeles ordered the state of California to stop the ten percent cuts to Medi-Cal providers that had gone into effect on July 1. The court found that patients and providers were being irreparably harmed by the cuts and providers had shown a high probability of success at trial on the merits of the case. The ruling is retroactive to July 1, which would suggest that pharmacies may expect refunds for underpayments.

At this point in time, it is not known if the state will appeal or what action, if any, the Administration or Legislature will take. Updates can be found at www.cpha.com or on this site.

Click here to read PAM's press release

Click here to read the court's order
 

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