Court: Calif. can cut Medicaid payments

A spokesman for California Gov. Jerry Brown (D) praised the decision, saying it would allow the state to "continue providing quality care for people on Medi-Cal while saving … millions of dialers in unnecessary costs."

But advocates for Medi-Cal providers and beneficiaries say cuts will hollow out the program by discouraging physicians and other health professionals from taking low-income patients.

The California Medical Association added that the cuts, estimated to save $623 million annually as of last year, are unnecessary now that voters have approved two initiatives to raise revenues.

"Our hope is the state will reconsider," said CMA spokeswoman Molly Weedn. "The state implemented these cuts when it was in much more dire straits than it is now.

it is unclear whether California will allow the provider cut to take effect, or when.