U.S. Supreme Court Sets Date for Oral Arguments in Medicaid Case - July 26, 2011

The U.S. Supreme Court recently announced that oral arguments for the case Douglas v. Independent Living Center of Southern California is set for Oct. 3. Douglas is a much-anticipated case for Medicaid providers nationwide. It is one of three to be consolidated that involve a proposed 10 percent reduction in Medicaid Medi-Cal payments to health care providers in California. The U.S. Court of Appeals for the Ninth Circuit found last year that the reduction violated federal Medicaid laws because the California Legislature had failed to conduct a study assessing the rate reduction’s effect on access to care. Now, the Supreme Court has agreed to decide whether health care providers may challenge California’s rate reduction under the Supremacy Clause. NAPH and other hospital groups had been opposed to the Supreme Court reviewing this case, due to the significant implications that such payment reduction would have in California and elsewhere. NAPH will be filling an amicus curiae brief and will provide updates as details develop.