A three-judge panel of the 9th Circuit has lifted an injunction against California from imposing a 10 percent rate cuts in the MediCal program. The ruling is the latest in the legal dispute over the ability of state Medicaid programs to cut reimbursements in response to their fiscal situations. The 9th Circuit three-judge panel heard the case after California appealed the court’s January decision to block the cuts from going into effect. The court, in its January decision, said the “fiscal crisis does not outweigh the serious irreparable injury plaintiffs would suffer absent the issuance of an injunction.” The state appealed this decision to the Supreme Court, which, in a 5-4 decision, returned the decision back to the lower courts in February after declining to decide whether providers and beneficiaries are allowed to challenge state Medicaid rate cuts. In response to the threejudge panel’s decision, providers have 45 days to ask the full court of nine judges for a new hearing. “Our hope is that state officials and Governor Brown can look at the situation and decide not to move forward with these cuts,” California Medical Association President Paul Phinney said in a statement. State officials, however, are planning to implement the cuts and collect retroactive payments after reviewing the ruling.