A judge has ruled that a hospital assessment that was passed by the Legislature that pays for the expansion of the state's Medicaid program is constitutional.
Maricopa County Superior Court Judge Douglas Gerlach's Wednesday ruling was a blow to Republican lawmakers who contend the assessment required a supermajority vote.
Lawyers presented competing arguments about the constitutionality of Arizona's hospital "bed tax" in a Phoenix courtroom on July 30.
Gerlach's ruling could determine whether 350,000 residents retain Medicaid coverage.
The case hinged on whether the assessment is a tax that should have been passed by a 2/3 vote in the state Legislature or a fee that can be passed by a majority vote.
Both sides in the case and Gerlach himself expect his ruling to be appealed.