The cuts were proposed in 2011 when the state was still reeling from a budget crisis and was taking austerity measures to balance its books. HHS Secretary Kathleen Sebelius approved those cuts that year because the cuts would not hurt Medicaid beneficiaries’ access to care.
The federal brief argued the cuts should be upheld by the courts as an appropriate measure states may take to tamp down healthcare spending, despite outcries from patients and providers.
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