There is a direct challenge of Governor Sanford's plan to move the state's 1 million Medicaid recipients from state-administered, fee-for-service health care to managed health care, administered by private insurance companies. The arguments are as follows:
The plaintiffs--rural health clinics and a nonprofit group--say changes to Medicaid must be cleared by the General Assembly under the state Administrative Procedures Act, with adequate public notice and opportunity for input.
Sanford's attorneys say the Department of Health and Human Services is the "single state agency" that can set Medicaid policy and the Legislature has no jurisdiction in that process.
An article on the suit can be found here.