The governor and legislature first tried to cut Medi-Cal reimbursement rates by 10 percent in last year's budget - and the Obama administration said that's okay.  But after doctors and other medical groups sued, a federal judge said it wasn't okay.  Now, a three-judge appeals court panel says California can make the cut after all.  Norman Williams is with the California Department of Health Care Services:

Williams: "It's a very important ruling and it provides the state with some guidance on how we can go forward to continue providing the services that so many Californians need while also addressing the state's budget situation."

The California Medical Association says the ruling could "tragically impact access to care for millions of Medi-Cal patients" - and it hopes the state won't implement the rate cut.

The Brown administration says the ruling could save the state's general fund $330 million a year.