Appeals court overturns federal Medicaid order

AUSTIN, Texas - A federal appeals court on Wednesday granted the state's request to delay a court-ordered plan to improve its children's Medicaid program.

The ruling by the 5th U.S. Circuit Court of Appeals overturns a ruling last week by U.S. District Court Judge William Justice denying the request.

The plan was part of Justice's Aug. 14 order that said Texas does not adequately provide dental care, regular checkups, transportation to doctors or information about available services to children in Medicaid, despite its 1996 promise to make major improvements to the program.

The program has come under heavy scrutiny as Gov. George W. Bush runs for president. Vice President Al Gore referred to the ruling when pressing Bush on Medicaid issues during the second presidential debate last week in Winston-Salem, N.C.

Texas is appealing the entire Aug. 14 order. The appeals court, based in New Orleans, granted the delay until oral arguments are heard. A date for those arguments has not been set.

''We are persuaded that the public interest will be better served by postponing any implementation of the district court's order,'' the order said.

State Attorney General John Cornyn said the latest ruling ''recognizes that our appeal of Judge Justice's order will not prevent the state from continuing its good faith efforts to ensure that every eligible Texan receives access to Medicaid services and programs.''

Bush campaign spokesman Ray Sullivan declined to comment beyond Cornyn's statements.

Susan Zinn, a San Antonio lawyer representing the plaintiffs in the class-action lawsuit that led to Justice's order, did not immediately return a message seeking comment.