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A state appeals court Thursday upheld hundreds of millions of dollars in Medicaid cuts imposed by the Legislature, dealing a setback to providers and patients who said the cuts would be devastating for disabled children. (Ketterer, 4/21)

The ruling by the Austin-based 3rd Court of Appeals also lifted a temporary injunction that had blocked Texas from implementing cuts that were intended to begin Oct. 1, 2015, but state officials haven’t yet determined when the new reimbursement rates will take effect, a spokesman for the Texas Health and Human Services Commission said Thursday. (Lindell, 4/21)

Some have warned the cuts would disrupt care for tens of thousands of disabled children, especially in rural Texas. But the the three Republican judges who heard the case said providers and patients lacked jurisdiction to sue. The plaintiffs have no vested right to a certain reimbursement fee, the judges ruled. “Medicaid benefits are entitled to constitutional protection, but this protection does not mandate that a Medicaid participant has access to a particular provider or that a participant’s provider will continue to receive payment or reimbursement rates at a previously set amount,” Justice Melissa Goodwin wrote. (Garrett, 4/21)

The reduced payments to therapists were ordered by the Legislature last year but were temporarily halted by a state district judge on the grounds that they might irreparably harm children. Speech, physical and occupational therapists argued they would be forced to stop treating children under the state’s current two-year budget, which includes a roughly 25 percent cut to the amount of money some pediatric therapists are paid by Medicaid, the joint federal-state insurer for the poor and disabled. Dan Richards, the lead attorney challenging the state, said he was “extremely disappointed” with the ruling and would ask federal health officials to intervene. (Walters, 4/21)

The decision is a major victory for the state, signaling a possible end in the monthslong debate over the Medicaid reductions. Lawyers who sued the state previously argued that the cuts would affect 60,000 mentally ill and disabled Texas children who rely on Medicaid coverage. The state countered, saying the number of state Medicaid therapy providers grew 30 percent between 2009 and 2014, and that their reimbursement rates were higher than in many other states. (Ketterer, 4/21)

About a dozen people spoke out against a state plan that would implement new fees for those receiving government health coverage, saying the proposal would disproportionately penalize the poorest in the state and cause tens of thousands of Ohioans to lose coverage. (Perkins, 4/21)

A state proposal to make Medicaid recipients pay for a portion of their medical care was roundly criticized in Columbus Thursday, with citizens and advocates for low-income residents arguing it would undermine care and increase costs. (Ross, 4/21)