Fifth Circuit declines to rehear case over ACA fees


The Fifth Circuit Court of Appeals will not reconsider its decision to reverse a ruling that would have awarded nearly $500 million to states in a lawsuit over the ACA’s insurance provider fees.

The court voted 11-5 not to reconsider its decision.

The provision required that states—on behalf of their Medicaid Managed Care Organizations—pay the fee to the federal government.

Six states including Texas sued, arguing the requirement was unlawful and that states were exempt from the fees.

A lower court judge in Texas had sided with the states, awarding them $479 million to be paid back by the federal government.

But the Fifth Circuit Court of Appeals overturned that ruling last year, and last week rejected a plea from the states to reconsider the decision.

The fee was repealed by Congress in 2021.


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