The Department of Health Care Services (DHCS) implemented a 10 percent payment reduction mandated by Welfare and Institutions Code (W & I Code), Section 14105.19 provided in the Budget Trailer Bill of 2008. This reduction applies to claims with dates of service effective July 1, 2008.

This notice is to advise you that a change is being made to the 10 percent payment reduction to exempt claims payable under the Cancer Detection Program: Every Woman Counts (CDP: EWC) program, as required by W & I Code, Section 14105.19. The payment system was adjusted so claims processed this weekend will not be reduced by 10 percent.

No action is required from providers. EDS will automatically reprocess CDP: EWC claims that were reduced by 10 percent, in conflict with W & I Code, Section 14105.19.