PHOENIX (AP) — An appeals court on Tuesday refused to block a major cost-cutting reduction of Arizona's Medicaid program, leaving intact an enrollment freeze projected to result in over 100,000 fewer sign-ups of low-income adults without children.

A judge had ruled against a challenge to the freeze implemented by the state's Medicaid program, known as the Arizona Health Care Cost Containment System. The Court of Appeals panel rejected an appeal of that ruling.

Challengers had argued that the freeze violates a voter-approved 2000 law increasing eligibility in the Medicaid program. The law had also required the Legislature to pay for the increase by using "any other available" money to supplement dollars from tobacco industry payments.

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