Texas, States Want Redo of Obamacare Medicaid Provider Fee Case

The full Fifth Circuit should rehear a case over a tax that cost six states nearly $500 million under an Obamacare provision that requires Medicaid managed care companies to pay a “health insurer premium fee” to the federal government, Texas and the states told the court.

The states’ challenge to the tax was improperly found to be time-barred, they said.

Section 9010 of the Affordable Care Act taxes health insurers on the premiums they charge states through their Medicaid programs.

But the responsibility for paying the tax shifted from insurers to the states in 2015, when the Actuarial Standards Board—acting ...