MEDI-CAL LITIGATION: California Medical Association, et al., vs. Toby Douglas, et al. (U.S. Supreme Court, 13-380) CMA along with the California Dental Association, California Pharmacists Association, National Association of Chain Drug Stores, California Association of Medical Product Suppliers, AIDS Healthcare Foundation, and American Medical Response, filed a lawsuit against the California Department of Health Care Services (DHCS) and the U.S. Department of Health and Human Services (HHS).
The lawsuit was filed in response to HHS's approval of the 2011 10% reimbursement rate cut for Medi-Cal providers. CMA led the efforts to seek an injunction against the State and the federal government under the Administrative Procedures Act, to invalidate and stop the implementation of the approved 10% Medi-Cal rate reduction. This massive payment reduction would have almost immediately threatened the ability of many physicians to continue their medical practices or otherwise continue to treat Medi- Cal beneficiaries thereby creating significant gaps in access to such services for Medi-Cal beneficiaries, particularly those already residing in medically underserved areas.
On February 1, 2012, U.S. District Court Judge Christina Snyder issued a preliminary injunction enjoining the State from implementing the 10% cut. The State appealed and filed a request with the Ninth Circuit Court of Appeals seeking an emergency stay of the District Court's preliminary injunction until there is a ruling from the Ninth Circuit on the merits. CMA opposed the State's request and the Ninth Circuit ruled in favor of CMA and denied the State's request for an emergency stay. Following oral arguments, a three judge panel of the Ninth Circuitreversed the District Court’s decision and vacated the preliminary injunction. CMA appealed the ruling.
On May 24, 2013, the Ninth Circuit denied the petition for rehearing and vacated the preliminary injunction in place. A petition for writ of certiorari before the U.S. Supreme Court was denied on January 13, 2014. Settlement negotiations are ongoing.