A legal hiccup could derail a legislative proposal to scale back Medicaid, sparing health coverage for up to 4,000 seriously ill and injured children and pregnant women in Utah.

Among a slew of budget cuts recommended late last week by an appropriations subcommittee was the elimination of Utah's $1.7 million Medically Needy Program, which allows catastrophically sick and injured children and expectant mothers to "spend down" their household income to qualify for Medicaid.

But new, rosier-than-expected state revenue projections could make those cuts unnecessary.

In addition, the cuts could have an unforeseen ripple effect, say Utah health officials. If the spend down program for women and children goes, the same program for seniors and the blind and disabled must go with it.

That's according to U.S. Centers for Medicare and Medicaid dictates that grant eligibility preference to poor women and children, said state Medicaid director Michael Hales. "I don't think lawmakers understood that."