Jolly
CALIFORNIA PHARMACISTS ASS'N v. Jolly
Opinion
Opinion
Snyder, J.
ORDER DENYING PLAINTIFFS’ MOTION FOR PRELIMINARY INJUNCTION AS TO HOSPITALS
I. INTRODUCTION AND BACKGROUND
On September 16, 2008, the California Legislature passed Assembly Bill 1183 (“AB 1183”), which was subsequently signed by the Governor and filed with the Secretary of State on September 30, 2008. AB 1183, inter alia, amends Cal. Welf. & Inst.Code. § 14105.191 and § 14166.245, mandating that, effective March 1, 2009, Medi-Cal reimbursement payments to some fee-for-serviee providers will be reduced by one percent, five percent, or ten percent, depending on provider type.
These reductions mandated in AB 1183 replace the ten percent rate reduction put into place by Assembly Bill X3 5 (“AB 5”), which terminated on February 28, 2009. See Cal. Welf. & InstCode § 14105.19(b)(1). AB 5 was passed by the California Legislature on February 16, 2008. On August 18, 2008, the ten percent rate reduction mandated by AB 5 was partially enjoined by this Court in a related action, Independent Living Center of Southern California, Inc. v. Sandra Shewry, CV-08-3315-CAS. In issuing the preliminary injunction, this Court found that petitioners had, inter alia, demonstrated a strong likelihood of…