| Medi-Cal Cuts Reimbursement - Retroactively! |
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 As a result of the California Budget Act of 2011, provider reimbursement rates are going to be reduced - retroactively. The 10% reduction had to be first approved by CMS for it to be effective. The cuts approved by CMS include:
- A 10% provider payment reduction on outpatient services, including:
- Physicians
- Clinics
- Optometrist
- Therapists
- Laboratories
- Dental
- Durable Medical Equipment
- Pharmacy
- A 10% provider payment reduction for free standing nursing and adult sub-acute facilites.
- A 10% reduction and rate freeze for distinct part/nursing facility-B services.
Services for children are not effected with this cut.
Managed care plans would see a 2.5% reduction in their capitation rates retroactively effective as of July 1, 2011. Plans would have to make a decision if they would like to make any cuts to providers.
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