Arizona's Medicaid program cancels 5 percent provider cuts

PHOENIX (AP) - Arizona's Medicaid program has cancelled a planned 5 percent cut to hospitals, doctors and other medical professionals after they objected and costs came in lower than expected.

The decision came just three months after Gov. Doug Ducey signed a plan for the budget year that begins July 1 that projected $37 million in savings from the cuts.

Hospitals complained at the time that they and other providers could also lose additional millions in federal matching funds.

The announcement from the Arizona Health Care Cost Containment System was posted on the agency's web site and first reported by the Arizona Capitol Times. It said lower overall insurance use and the comments played a role.

Ducey spokesman Daniel Scarpinato said Tuesday the agency determined it could cover its costs using existing revenues.