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Judge halts Calif. Medicaid rate freeze
Modern Healthcare

A federal judge has granted a temporary injunction to California hospitals, prohibiting the state from implementing a planned inpatient Medicaid rate freeze.

Last October, the California Legislature froze the rate at which hospitals are reimbursed for inpatient Medicaid services (called Medi-Cal in the state) to rates paid either in January or July of 2010, whichever was less. The freeze applied to both contracted and noncontracted hospitals.

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