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State Drops Out of Suit Over Medicare Drugs

From Times Staff Reports

California is withdrawing from a planned multi-state lawsuit intended to force the federal government to pay costs associated with the new Medicare prescription drug program, Atty. Gen. Bill Lockyer said Thursday.

Lockyer said he decided against suing after receiving assurances from the federal government that the state would not have to pay $131 million to move seniors covered by Medi-Cal, the state’s healthcare program for the poor, into the federal program.

After states threatened to sue, Lockyer said, the federal government revised its formulas and told California that it would not have to make the payments.

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