California Already has a Court Challenge Going to the Supreme Court

There’s a story in Bloomberg today about a relevant court case from California already headed to the Supreme Court.  California is challenging the Federal Government’s ability to mandate their Medicaid reimbursement rate.  If the Supreme’s decide in California’s favor, this could seriously damage Obamacare’s ability to mandate that up to 16 million newly insured be covered by the state Medicaid system.

The money line:

The Ninth U.S. Circuit Court of Appeals on March 3 barred California from reducing payments to doctors and hospitals, saying federal law required states to maintain “equal access to basic health care” for the poor. California is appealing the decision to the U.S. Supreme Court.