Maxwell-Jolly

Managed Pharmacy Care v. Maxwell-Jolly

Caution
603 F. Supp. 2d 1230·2009 WL 510392
United States District Court, Central District of CaliforniaFebruary 27, 2009Case CV 09-382 CAS (MANx)California5,010 words

Opinion

Opinion

Snyder, J.

ORDER GRANTING PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION

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 amends Cal. Welf. & Inst.Code. § 14105.19 and mandates that, effective March 1, 2009, Medi-Cal reimbursement payments to some fee-for-service providers will be reduced by one percent or five percent, depending on provider type. Particularly relevant to the instant action, AB 1183 enacts a modified Cal. Welf. Inst. Code § 14105.191 (b)(3) so as to require that Medi-Cal fee-for-service payments to pharmacies be reduced by 5 percent.

These reductions mandated in AB 1183 replace the ten percent rate reduction put into place by Assembly Bill X3 5 (“AB 5”), which is scheduled to terminate on February 28, 2009. See Cal. Welf. & Inst.Code § 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,…

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