Talks have broken down among Kentucky lawmakers who have been working on a compromise to balance the commonwealth’s Medicaid budget.

House and Senate negotiators ended their discussions shortly before 5 pm Tuesday with no additional talks scheduled. That potentially leaves Governor Steve Beshear with two options: cut reimbursements to medical providers or cut services to some of the more than 800,000 poor, disabled and elderly Medicaid recipients.

The House prefers the governor’s plan for balancing Medicaid without budget cuts. The Senate believes across-the-board cuts to state agencies are necessary.

Additional reporting by the Associated Press and Tony McVeigh