Judge upholds Arizona hospital levy for Medicaid expansion

PHOENIX — A state judge this morning upheld the levy on Arizona hospitals that is funding expansion of the state's Medicaid program.

Maricopa County Superior Court Judge Douglas Gerlach rejected arguments by some Republican lawmakers that the levy is a tax which constitutionally requires a two-thirds vote in the state Legislature.

The measure pushed through when Jan Brewer was governor passed with a majority vote, did not get that margin.

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The ruling could determine whether 350,000 residents retain Medicaid coverage.