TOPEKA – (August 22, 2018) – Over several years, the federal government illegally collected an Obamacare fee from Kansas and now must repay the state more than $142 million, a federal judge ruled yesterday. Kansas Attorney General Derek Schmidt and five other states sued the federal government, arguing that the Health Insurance Provider (HIP) Fee – one of the numerous taxes and fees imposed by the Affordable Care Act, or “Obamacare” – was being illegally collected from their state treasuries. Federal law expressly prohibits the imposition of the HIP fee on states, but in states like Kansas that contract with private managed care organizations (MCOs) to operate their Medicaid programs, the federal government imposed the fee on the MCOs, then adopted...
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AG Derek Schmidt: Court says feds owe Kansas $142 million for Obamacare miscue