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Kansas Joins Federal Lawsuit on Insurance Company Fees

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.


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