The Obama administration will allow California to reduce payments to many Medi-Cal providers by 10 percent, a move consumer groups say they oppose.
The Centers for Medicare and Medicaid Services said California plans to reduce payments to many providers including physicians, dentists, clinics, pharmacies and most nursing homes, the Los Angeles Times reported Friday.
"We know that the reductions that are being approved today will have significant impact on affected providers, and we regret the very difficult budget circumstances that have led to their implementation," Cindy Mann, deputy administrator of the Centers for Medicare and Medicaid Services, said.
The cuts are expected to save California $623 million of the $14 billion it spends on Medi-Cal, the state's Medicaid program.
However, the cuts "will have a real impact on Medi-Cal patients" because fewer doctors will be willing to see those covered by the program that serves 7.6 million poor and disabled Californians, Anthony Wright, executive director of the consumer group Health Access, said.
