The Supreme Court of the United States heard its first oral arguments in the case of Douglas et al v Independent Living Center of Southern California, where health service providers in California challenged the State's intention to axe reimbursements for payments made to the poor and disabled. The providers challenged the cuts on the basis that it would violate federal law. However, the State of California maintained that 10 percent cuts would amount to $700 million dollars in savings. California Deputy Attorney General Karin Schwartz and Deputy Solicitor General Edwin Kneedler claimed that federal law was only enforceable by the government in addition to the fact that 'private' citizens do not have the right to sue.
The state of California has revealed that its revenue for August was below par coming in at €65 billion which means the more savings need to be made. Medicaid payment rates were the focus of their attention.
Click here to view an article by Reuters on the case.
Click here to view a piece by the US Supreme Court blog on the case.