Bill that Blocks Med-Cal Cuts Clears Committee on Unanimous Vote

Bill that Blocks Med-Cal Cuts Clears Committee on Unanimous Vote

 

Following a strong show of support from a broad coalition of stakeholders consisting of healthcare professional organizations (including the California Podiatric Medical Association), labor groups, insurance providers, pharmacies and California hospitals, a measure to block the state’s planned Medi-Cal cuts has taken its first step towards becoming law.

SB 640, authored by state Senator Ricardo Lara (D-Los Angeles) passed out of the Senate Committee on Health with an 8-0 vote.

If approved, SB 640 would repeal the 10 per cent cut to Medi-Cal reimbursement rates passed as part of the state's 2011 budget. To date, the cuts have yet to implemented, due to a pending lawsuit. Last year, the court denied the cuts, but the state appealed the ruling and an appeals court recently ruled that the cuts could move forward. The state plans to assess the cuts both retroactively to June 2011 and going forward.

SB 640, if approved, would prevent both scenarios from occurring.