Provider Reimbursement

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Long-Fought Medi-Cal Provider Rate Cuts Take Effect

Health care providers joined in a rally at the state capitol to protest cuts in Medi-Cal reimbursement rates in June, 2013. (California Medical Association/Flickr)

Health care providers joined in a rally at the state capitol to protest cuts in Medi-Cal reimbursement rates in June, 2013. (California Medical Association/Flickr)

A long-awaited and much-feared ten percent rate cut goes into effect Thursday for doctors and clinics reimbursed through Medi-Cal –- the state’s health insurance for low-income patients. This comes at the same time the federal health overhaul is expanding that program to as many as 2 million Californians.

Provisions of the Affordable Care Act will protect primary care doctors from the cuts for the next two years, but specialty doctors that treat the poor are bracing for the hit. Many physicians in dermatology, neurology, cardiology, and urology will now be losing money on every Medi-Cal patient they see. Some will have no choice but to turn low-income patients away.

“Bottom line, they cannot continue to provide care for below the cost of care,” says Shannon Smith-Crowley, a lobbyist who works closely with the California Medical Association. Continue reading