Governor Signs Legislation to Address Budget Shortfall
After months of deadlock the Legislature finally passed and sent to the Governor a package of tax increases and program reductions to address the $42 Billion shortfall in the state budget over the next 19 months.
In the Medi-Cal program there is elimination of some optional benefits, i.e. adult dental, podiatric services, but no changes to physician service coverage or payment. The prior budget statutes do call for a 1% provider rate cut for physicians and many other provider types effective March 1, 2009. A request to enjoin that cut is being heard today in federal court and a decision will be made prior to 3/1/09. You will recall that the 10% rate cut established on July 1, 2008 was later stopped via injunctive relief in August 2008. Many believe that same federal court will enjoin the 1% reduction.
CMS Denies Coverage for CT Colonography for Colorectal Cancer Screening
On 2/11/09 CMS issued a policy indicating that Medicare would not cover CT colonography as a screening tool for colorectal cancer.
The CMS provided the following rationale for the denial of coverage and stated that a final decision would be rendered after additional comment is received. "While it is a promising technology, many questions on the use of CT colonography need to be answered with well-designed clinical studies that focus on health outcomes for the Medicare population. Until the evidence is sufficient, CMS strongly encourages physicians and beneficiaries to participate in colorectal cancer screening by selecting one of the several CRC screening tests that are currently covered under Medicare ".
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