Alaska Gov. Michael Dunleavy Monday vetoed state appropriations that would have restored $50 million in Medicaid funding cuts for fiscal year 2020. The $50 million cut enacted through the governor's veto is in addition to a previous reduction of $77 million enacted through the legislative process. To help achieve savings targets, the state cut provider rates July 1 through emergency regulations, including a 7% cut to Medicaid payments for hospitals and other providers. The Alaska State Hospital and Nursing Home Association has challenged the emergency regulations in state court, alleging they violate the federal Medicaid Act and state law. The lawsuit asks the court to invalidate and enjoin enforcement of both the emergency regulations and proposed regulations that would make them permanent.

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