Does the State get to ignore or bypass the law....California Medical Association doesn't think this is the case....potential lawsuit in the works...relating to the recent cuts in Medicaid compensation...BD 

When Gov. Arnold Schwarzenegger and lawmakers agreed last month to cut 10 percent from what the state pays Medi-Cal doctors, they did so without knowing how it might further limit services to the poor.Now a coalition of doctors, hospitals, medical providers and local governments is considering a lawsuit against the state to fight what they consider to be devastating cuts. Led by the California Medical Association.

That's because for years the state has been ignoring a law requiring the Medi-Cal director to conduct an annual review in order to keep doctors' reimbursement rates competitive with other insurance programs.

"I've never seen these reports," said Assemblywoman Patty Berg, D-Eureka, a member of the Assembly Health Committee. "I think some of these reports haven't been done in so long that they're pretty much forgotten."

Politics - State ignores law requiring annual Medi-Cal payment studies - sacbee.com

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