Kansas joins states suing feds over Obamacare ‘tax’

TOPEKA (KSNT) – Kansas has aligned itself with the states of Texas and Louisiana to sue the federal government over Obamacare. The three states claim a regulation forces states to pay an unconstitutional tax to fund Obamacare.

According to Governor Sam Brownback’s office, the health insurance provider fee is assessed to Medicaid or CHIP managed care organizations in order to fund Obamacare. However, under the law, Kansas and the other 49 states are required to reimburse the managed care organizations for this fee.

Governor Brownback had this to say:

“The federal government is threatening to cut $1.6 billion of federal Medicaid funding affecting more than 400,000 Kansans in need unless kansas pays millions of dollars in taxes to the federal government to support Obamacare. This is just one more instance of an overreaching federal regulation designed to coerce states into funding or participating in Obamacare. In 2015, Kansas paid more than $32 million to cover costs associated with the health insurance provider fee,” Governor Sam Brownback stated in a news release Thursday.

He concluded with: “This is a tax Kansans should not have to pay and is an unconstitutional overreach of federal authority.”

TOPEKA, Kan. (AP) — Kansas and two other states are suing the federal government over fees imposed on insurance companies as part of the Affordable Care Act.

In a news release issued Thursday, Kansas Attorney General Derek Schmidt said the state is seeking a $32.8 million refund from the federal government. The lawsuit, which was filed with Texas and Louisiana, also seeks to stop the collection of fees from insurance companies that manage the states’ Medicaid and Children’s Health Insurance programs.

States are required to reimburse the private insurance companies for the costs of the fee.

The lawsuit argues the Affordable Care Act did not give clear notice to states that they would have to reimburse the fee as a condition of receiving federal funds for their Medicaid and CHIP organizations.


Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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