Under pressure from Democrats, patient advocates and public hospitals, California will not go ahead with a planned shift of thousands of elderly, blind and disabled Medi-Cal recipients to managed care plans. The failure to meet the deadline will cost the state $98 million in federal funds. California had agreed to the proposal to move patients into the private plan as part of a compromise with the Centers for Medicaid and Medicare Services. California's decision is likely to be viewed as a significant setback for supporters of Medicaid privatization at the state level.
- see this story from the Los Angeles Times