I sincerely hope the Alaska Supreme Court hears this case. While, I do not support Medicaid expansion, this case is remarkably similar to the recent case where Texas sued to block President Obama's executive action re: illegal immigrants (oddly, I supported the President's position) and the United States Supreme Court upheld (by virtue of a 4-4 tie) the lower Court that ruled the president did NOT have the constitutional authority to make that decision,. Congress, by it's inaction on immigration reform, did not yield the authority to the President, nor did the Alaska Legislature, by it's inaction on Medicaid, give up it's authority to accept and appropriate additional funding. 

Common denominator: Executive branch overreach. The facts/merits of immigration reform/Medicaid expansion have no standing in the matter; this is only a clear separation of powers issue