The Governor has called another special session to address the current budget shortfall of approximately $7 billion in the current fiscal year. It remains to be seen whether the democratic controlled legislature and the new Governor will actively pursue a mid-year budget deal or wait for the new administration.

The Governor's special session solution would close the gap mostly through Medi-Cal and social services. He proposes the same reductions that were part of his May revise and rejected by the Legislature in the final budget deal. The Governor's proposed Medi-Cal changes that would impact optional services like DME/medical supplies with dollar caps on services, e.g. $1806 per year for DME, similar dollar caps on various medical supply categories, and elimination of coverage of oral enteral nutrition. CAMPS will remain vigilant in opposing these caps on certain services and the elimination or coverage of oral enteral nutrition.

We have previously informed you of the pending Writ of Certiorari filed by DHCS with the US Supreme Court to hear an appeal of the federal court injunction of the previous Medi-Cal 10% provider rate cut from 2009. That decision eliminated the rate cut for many providers, but not for DME or medical supply providers. The Writ has been pending for some time with no decision as to whether they would accept the case for hearing or not. CAMPS had filed and been granted the right to intervene to get the same relief for DME and medical supply providers.

There have been two important developments that bode well for eventual relief and repayment of the 10% cut for our members. First, the CMS formally rejected the state plan amendments that were filed in 2009 by DHCS that would have allowed those rate reductions. Second, last week the US Solicitor General informed the Supreme Court via letter that they did not recommend that the Court hear the appeal. That action was in doubt and is a strong indication that the Court may reject the Writ and not hear the case. A decision should be announced by the Court on January 10^th as to whether the Writ is accepted or denied.

If the Court does not accept the case, that should set in motion a process to have impacted providers repaid for the 10% cut that occurred from July 1, 2009 to March 1, 2010. The timetable for that, if and when it occurs, is still unknown. We will keep you informed on developments.