The State : Cuts in Medi-Cal Upheld

A federal appeals court in San Francisco has refused to block federally ordered cuts of $71 to $142 in Medi-Cal benefits to about 4,900 elderly or disabled Californians, but the Deukmejian Administration says it is undecided about whether to implement the cuts. Because the U.S. 9th Circuit Court of Appeals plans to hear the case quickly, the state may delay action on emergency regulations that would require recipients to spend more money on medical care, said Steve Koyasako, lawyer for the state Health Services Department. He also noted that a bill awaiting a vote, AB554 by Assemblyman Louis J. Papan (D-Millbrae), would require the state to keep benefits at current levels, regardless of federal action.