Six states filed suits in federal court against a provision of the Patient Protection and Affordable Care Act that requires states to pay a portion of a fee imposed on insurers.
The Health Insurance Providers Fee is aimed at insurers, which pay the fee, based on their share of the Obamacare plan market. The Obama administration says that states are obligated to pay a part of that fee to the insurers that participate in their Medicaid programs. Those insurers then pay the federal government, which then reimburses the states at roughly 50 percent.
Sound confusing? The six attorney generals from the states filing the suit agree.
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