healthcare Clinics say new medicaid program will force them to cut services
Gov.
But the allocation falls far short of what clinic officials say they need to keep critical health care services funded in some of California’s neediest areas. California’s federally qualified health centers, which operate more than 1,000 clinics across the state, have filed a lawsuit in federal court to exempt them from the program, but a judge on Monday denied their request for a temporary reprieve while the lawsuit proceeds.
“People are going to be laid off; services are going to be cut,” said
The drug program, known as Medi-Cal Rx, debuted
On his first day in office in 2019, Newsom promised the overhaul would deliver better health care for patients and generate “substantial annual savings” because the state would negotiate lower prices as one of the largest drug purchasers in the country.
The Newsom administration anticipates the state will save
California’s health clinics, however, could lose up to
At issue is money the clinics have received through a federal prescription drug savings program known as “340B.” The 340B program requires drug manufacturers participating in Medicaid to offer deep discounts to certain providers that care for underserved and uninsured people, including health clinics. The health centers, in turn, must use that money to expand health care services.
Beginning
The
“Plaintiffs have no entitlement to continued profits from selling marked up 340B drugs,” she wrote.
The funding Newsom proposed is not guaranteed. Indeed, it is now subject to the annual budget negotiation process. The legislature has until
“We’re always happy to sit down and try to understand what the conditions are today,” Ghaly said.
California Healthline’s


New state law targets surprise medical bills
Top 10 Things People Pretend They Don’t Know – OpEd [Eurasia Review]
Advisor News
- The 6X Formula for leveraging content marketing with AI
- When a home becomes difficult to insure, the plan changes
- The inheritance gap: Helping clients plan for money that hasn’t arrived
- After the midterms: Addressing your clients’ tax concerns
- Berkeley arts tax heads toward passage while public bank measure looks likely to fail
More Advisor NewsAnnuity News
- DOL, trade groups, state AGs file briefs supporting Alcoa in PRT lawsuit
- John Hancock launches new fixed indexed annuity suite
- Annuities to play a larger role in workplace retirement plans
- FHLBank Pittsburgh Announces Results in 2026 Board Election
- Regulators advance shorter, streamlined annuity buyers guide
More Annuity NewsHealth/Employee Benefits News
- Recent Findings from University of Maryland School of Medicine Has Provided New Data on Managed Care (Medicare Part D utilization management for negotiated drugs and within-class comparators, 2019-2026): Managed Care
- Kansas' rate of children without health insurance tops national average for second year
- Incoming chair of US Senate panel will seek healthcare overhaul, but unclear on details
- New Virginia subsidies help lure people back to health insurance
- High costs limit rural Nebraskans’ access to health care
More Health/Employee Benefits NewsLife Insurance News
- Three lawsuits put life insurers’ cost-of-insurance practices under scrutiny
- Military Briefs: November 12-18
- Security Benefit Series B Preferred Stock Dividend Rate Resets to 10.286%
- FHLBank Pittsburgh Announces Results in 2026 Board Election
- New Jackson Study Finds the "Sandwich Generation" Squeeze Comes from More Than Two Sides and It’s Quietly Draining Retirement Savings
More Life Insurance News