A federal appeals court says Indiana’s social services agency can’t set a cap on the amount of money the state pays people on Medicaid for dental services so long as the treatment is medically necessary.

The 7th U.S. Circuit Court of Appeals in Chicago this week upheld a preliminary injunction granted by a federal judge in South Bend. That order blocked the Indiana Family and Social Services Administration from enforcing a $1,000 annual limit on dental coverage. The agency set the cap as a cost-cutting measure in 2011.

The court says the cap violates state and federal Medicaid regulations and could force some recipients to go without care.

FSSA spokeswoman Marni Lemons says the state hasn’t decided whether to appeal, but it believes the cap is “reasonable and appropriate.”