The Governor's budget proposal for 2014-15 got leaked a day early but has some very good news on the potential claw back or recoupment of prior payments to Medi-Cal physician providers re the 10% rate cut. He is proposing to not take the money back on the retroactive basis to June 1, 2011 which would be a major relief for all physicians. This proposal has to go through the budget process over the next 5 months but the Governor was the major impediment to efforts last year in the Legislature to stop the retroactivity. We will keep you informed.

This doesn't stop the implementation of the 10% reduction for new claims as of 1/9/14 which has begun. It is still possible that legislative or budget action could end that at some point, but nothing definitive as of now. The 10% reduction applies to Medi-Cal fee for service payments. The Medi-Cal Managed Care plans that cover the majority of Medi-Cal beneficiaries had their capitation rates adjusted last October "on an actuarially equivalent basis" to reflect the 10% but exempted physician specialty services like diagnostic radiology, interventional, and radiation oncology. CRS has verified that the PC of those services will not be reduced but it is less clear on the TC only component from the DHCS directive. Still seeking clarification and  if radiology groups can let us know what if any changes they have seen in Medi-Cal managed care payments it would be helpful.