5th Circ. Says States Wrongly Won $479M ACA Insurer Fee

Law360 (July 31, 2020, 6:46 PM EDT) -- Six states were wrongly awarded $479 million in disgorgement from the federal government over the Affordable Care Act's health insurance provider fees, as the fees were not unconstitutional and their suit came too late, the Fifth Circuit said Friday. 

A three-judge panel affirmed that Texas, Kansas, Louisiana, Indiana, Wisconsin and Nebraska had standing to bring the suit claiming they illegally bore the burden for the fees under their agreements with Medicaid contractors, but it was filed after the six-year window had expired. 

The fees, imposed under Section 9010 of the ACA, also violate neither the U.S. Constitution's spending clause nor the...

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