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US appeals court reverses $479M award to states in Affordable Care Act refund suit

August 3, 2020

Via: Jurist

The US Fifth Circuit Court of Appeals has overturned a decision that would have required the federal government to return more than $479 million to six states that argued that the federal government had illegally collected a fee from them under the Affordable Care Act (“ACA”).

Texas, Kansas, Louisiana, Indiana, Wisconsin, and Nebraska challenged the lawfulness of the ACA’s provisions that a state’s managed-care contracts must be approved by the Department of Health and Human Services (HHS) as “actuarially sound” in order to receive federal reimbursement and that it must pay an annual Provider Fee.

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