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Federal judges says US government owes Kansas $142M

August 23, 2018

TOPEKA, Kan. (AP) — A federal judge says Kansas is owed $142 million and five other states millions more for costs paid to help finance former President Barack Obama’s health care law.

But Kansas Attorney General Derek Schmidt said in a statement Wednesday that Kansas shouldn’t count on getting the money soon because an appeal is likely.

The Lawrence Journal-World reports that the case involves a fee that the federal government levies on insurance companies to subsidize the cost of discount insurance provided through federal and state exchanges. States were exempted, but private insurers that administer Medicaid programs in states like Kansas weren’t.

Kansas and the other five states challenged a requirement that they reimburse the managed care contractors by building the cost of the fee into the rates paid to the companies.

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Information from: Lawrence (Kan.) Journal-World, http://www.ljworld.com

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