I have never heard of companies bidding on business with Logisticare. They have their standard rates, which are comparable to Medicare rates for Medicare patients, and Medical for Medical/HMO patients. We would not do business with them if the rates were lower than that.
City of LA rates are a totally different issue. Nobody pays those rates. What insurance company would pay close to $1,000 per call? That's unrealistic. Medicare does not do that. They have their own rate and the City or County rates are downgraded to the Medicare "allowance".
You might want to consult a lawyer as what you just said is wrong. Yes medicare can pay what they want and so can Medicaid(medi-cal) being both are government run service. Private business must pay legal city rates being that is what you are required to charged. It's irrelevant if they want to pay that rate or not, the fact is they are legally required and you're legally can't accept anything lower. Just because "nobody pay those city rate" don't mean it's legal. You're not getting check from medicare but instead from logisticare which is private company.