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Health care providers sue to stop California cuts

LOS ANGELES
Mon May 5, 2008 9:12pm EDT

LOS ANGELES (Reuters) - Health care companies said on Monday they had sued to stop some $1.3 billion in California cuts to state medical and dental programs.

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The suit filed in Los Angeles County Superior Court says the planned cuts to Medi-Cal and Denti-Cal violate state and federal laws requiring Medicaid payments be high enough to enlist enough providers to make services widely available.

The providers, including the California Medical Association, the California Hospital Association, and others, said in a statement they had asked the court for an injunction before the cuts go into effect on July 1.

Asked about the suit, Lisa Page, a spokeswoman for Gov. Arnold Schwarzenegger, said he was pushing for health care and budget reform.

(Reporting by Peter Henderson and Bernard Woodall, editing by Richard Chang)
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