An extension in Medicaid coverage is thought to be a bright opportunity for California. It is said that additional 1.4 million people will derive the benefit from the extension, which will take place in 2014.

The changes, which will take place under federal health reform, are expected to get mixed response from Californian Hospitals. One of the most important benefits that hospital will get is federal support. Not only this, primary care doctors can expect a rise in their pay.

It shall however, be noted that it was not necessary for the US to adopt the Affordable Care Act. Justices when gave thumbs up for the act they then made Medicaid coverage to be an exception, which can also be left.

In addition, a case has come up for California in which Newport Specialty Hospital and Anaheim General Hospital, have agreed that they will pay a fine worth $16.5 million fine. The news revealed by the Department of Justice has revealed the cause of paying the penalty as the hospital recruited the homeless people for such medical treatments, which were unneeded.

The unneeded treatments caused a lot of money to the government. “This massive settlement demonstrates the commitment of the United States Justice Department to eradicate fraud”, said United States Attorney André Birotte Jr.