- Associated Press - Tuesday, February 16, 2016

OKLAHOMA CITY (AP) - Oklahoma Gov. Mary Fallin is rejecting proposed state mental health rules that would have prohibited payments to independent counselors and therapists to treat Medicaid-eligible Oklahoma children.

Fallin said Tuesday she’s rejecting the proposal by the Oklahoma Department of Mental Health and Substance Abuse Services that was enacted as a result of budget cuts to state agencies.

Fallin said in a statement that an analysis by her office shows the rules wouldn’t save the agency money because thousands of children would simply switch providers.

But DMHSAS spokesman Jeff Dismukes says the agency projected the new rules would save about $1.2 million for the remainder of the fiscal year that ends June 30.

Dismukes says the state’s revenue failure this year has resulted in cuts of $9.8 million to the agency.

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