California hospitals sue to stop funding cuts

January 25, 2012

The California Hospital Association (CHA) is suing state and federal officials to block a 10% cut in government reimbursements to healthcare providers who treat low-income patients under the state's Medi-Cal program. The CHA claims the cuts will force many hospitals to close their skilled nursing facilities.

The California Hospital Association (CHA) is suing state and federal officials to block a 10% cut in government reimbursements to healthcare providers who treat low-income patients under the state's Medi-Cal program. The CHA claims the cuts will force many hospitals to close their skilled nursing facilities.

An INDIANA health insurer is the first to be flagged by the federal government for what it called excessive rate hikes. The U.S. Department of Health and Human Services (HHS) said Everence Insurance Co.'s planned 12% rate hike for some of its policy holders in PENNSYLVANIA is not warranted by what it is expected to pay out in medical claims in Pennsylvania.

Federal healthcare reform does not allow HHS to block increases, but it can require insurers to justify them publicly. A spokeswoman for Everence said the company does not plan to make any changes to the rate increase.

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