The Supreme Court opens its 2011-2012 term on Monday with a case that could have broad implications for the Medicaid program, pitting hospitals and doctors against the state and federal government.
In the case, known as Douglas v. Independent Living Center, Medicaid providers, including doctors, hospitals, and long-term care facilities, sued the state of California over a 10 percent cut to Medicaid reimbursement rates.
They say the cut violates federal law that requires beneficiaries to have equal access to care. California says providers don’t have the right to sue the state over Medicaid reimbursement rates – only the federal government. The U.S. Solicitor General filed a brief agreeing with California.
A ruling against providers could affect other big Medicaid cases, such as Planned Parenthood’s suit against Indiana for withholding funds.