Douglas v. Independent Living Center of Southern California

The United States Supreme Court remanded the California Medicaid challenge, Douglas v. Independent Living Center of Southern California et al., to the Ninth Circuit Court of Appeals, delaying a decision on whether Medicaid providers and beneficiaries can bring lawsuits against state Medicaid officials.  The Douglas case arose when California severely reduced Medicaid provider rates.  Medicaid providers and beneficiaries sued, arguing that the rate reduction violated federal law.  Since the Supreme Court agreed to hear the case, the Centers for Medicare and Medicaid Services (CMS) determined that California’s rate reductions did not violate federal law.  The Ninth Circuit will rehear the case to determine if Medicaid providers and beneficiaries can maintain their cause of action in light of the decision by CMS.

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