State Proposal to Cut Medicaid Could Violate Settlement

In an effort to curb state spending, a budget proposal could violate a court settlement.

A Texas state official say the proposal to cut reimbursement rates to certain Medicaid providers could violate a 2007 ruling in which the state agreed to improve access to medical care for poor children.

Initial drafts of the proposal reduce those rates by more than 10 percent.

Officials say if lawmakers cut rates for primary care doctors another 10 percent, he's not sure whether he could comply with the access provisions.

The proposal is estimated to save millions of dollars as the state works to write its next budget.