Arguments are soon to be heard regarding a preliminary injunction in a case that may have profound effects on how nursing home care is delivered to the poor in Humboldt County and across the state.
To help deal with California’s budget crisis, this year’s California budget included a 10% reduction in Medi-Cal reimbursement rates for freestanding skilled nursing facilities and other healthcare providers (AB 97). This 10% cut is scheduled to go into effect retroactively to June 1, 2011. That cut was recently approved by the Obama administration. The State has agreed that, on December 31, 2012, it will reimburse medical providers for the 10% that is held back, provided it has the money.

