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Medi-Cal Cut of 10 Percent Begins Next Month

SACRAMENTO, Calif. (AP) — A long-delayed cut to California's Medi-Cal program for the poor will take place next month — slashing reimbursements to health care providers by 10 percent. A lawsuit delayed implementation of the cuts proposed two years ago. But the Los Angeles Times says they'll be phased in beginning next month. Dentists and medical transporters will be hit first, with doctors, pharmacists and nursing facilities avoiding reductions until January. A federal appeals court in June ruled that the cuts can proceed. The state Department of Health Care Services says they'll save $387 million. Opponents say the cuts are unnecessary now that California's budget has improved, and ill-timed because they make Medi-Cal less attractive to providers as California expands the program under President Obama's health care overhaul.

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