Court Blocks Governor’s 10% Cut in Medi-Cal Fees

Gov. George Deukmejian’s 10% cut in Medi-Cal fees to doctors and other health-care providers was blocked by a federal court order Friday, only a week after the contested $18.7-million reduction took effect.

The temporary court order was sought by the California Medical Assn. and groups representing needy Californians, who tried unsuccessfully last week to have a state appellate court in San Francisco permanently block the cut.

Deukmejian in December ordered the 10% cut as part of an emergency midyear budget change because cost overruns in the state’s $5-billion Medi-Cal program and elsewhere threatened to eliminate his $1-billion budget reserve for emergencies. The Medi-Cal cut ordered for Feb. 1 was prevented from taking effect until Feb. 6 because of the state appellate challenge.

Federal Judge Lawrence Karlton said in granting the temporary court order that some Medi-Cal patients already appear to be having trouble receiving the quality of care available to other Californians.

He pointed to a signed statement from Dr. Jerome Lackner of Sacramento, who served as state health director under former Gov. Edmund G. Brown Jr. Lackner said it is becoming increasingly difficult to refer patients to specialists for treatment because of low Medi-Cal fees.

“Because I find this is a serious matter that is fair ground for litigation and I find there is a threat of irreparable injury as to some of the plaintiffs in this case, I do believe a temporary restraining order is appropriate,” Karlton said.

Karlton set the next hearing on the issue for March 5.