Maxwell-Jolly

MEMORANDUM *

Petitioners-Appellees Independent Living Center of Southern California, Inc., et al. sought a preliminary injunction in the district court seeking to enjoin AB 5’s ten percent Medi-Cal reimbursement rate reduction as to non-emergency medical transportation (NEMT) services and home health services. As the facts and procedural history are familiar to the parties, we do not recite them here except as necessary to explain our disposition.

The district court enjoined the Director “from reducing by ten percent payments under the Medi-Cal fee-for-service pro *308 gram for NEMT and home health services provided on or after November 17, 2008.” 1 The Director timely appealed.

On appeal, the Director admits that the State did not evaluate whether reduced payments to NEMT providers and home health agencies would comply with the Orthopaedic Hospital v. Belshe, 103 F.3d 1491 (9th Cir.1997), court’s interpretation of 42 U.S.C. § 1396a(a)(30)(A)’s efficiency, economy, and quality provision. The Director argues that the State was not required to do so because “that interpretation has been rejected by the federal agency responsible for administering the program and the other federal…