SAN FRANCISCO - In a Medicaid reimbursement case, a California appeals court on Feb. 28 affirmed a demurrer in favor of the defendant, saying that based on changes in law, states are not required to consider provider costs in setting reimbursement rates (Tim Keffeler, et al. v. Partnership Healthplan of California, No. A135536, Calif. App., 1st. Dist., Div.1; 2014 Cal. App. LEXIS 200).