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PHOENIX — The Arizona Supreme Court on Wednesday allowed a lawsuit to move forward challenging Gov. Jan Brewer’s Medicaid expansion plan. The decision deals a major blow to the governor’s signature achievement days before she leaves office.

The high court agreed that 36 Republican lawmakers can sue Brewer over the legality of a hospital assessment that funds the expansion plan.

The ruling means Brewer’s plan to insure about 300,000 poor Arizonans using a key part of President Barack Obama’s health care overhaul could be crippled as she hands the governor’s office to fellow Republican Doug Ducey.

Brewer, who leaves office Jan. 5, said in a statement that she was “naturally disappointed” in the ruling but hopeful she eventually will prevail. Ducey, who opposed the expansion, would not say Wednesday whether he would drop the battle and let the program end.

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