A ruling last week by a Kentucky Circuit Court judge that rejected a tax on doctors' fees could create a funding crisis for the state's $4 billion Medicaid program.

Franklin County Circuit Judge Roger Crittenden ruled Nov. 23 that the 2% tax on doctors' gross receipts violates the state constitution because it compels support of a program whose benefits are applied too broadly. Crittenden also declared unconstitutional a relaxed tax on health maintenance organizations.

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