Health Affairs August 3, 2020
On July 31, 2020, a three-judge panel of the Fifth Circuit Court of Appeals reversed a ruling from Judge Reed O’Connor of the northern district of Texas. Judge O’Connor had held that the government owed six states about $479 million for the Affordable Care Act’s (ACA’s) health insurance tax as applied to Medicaid managed care entities from 2014 to 2016. The Fifth Circuit disagreed, holding that the states were not entitled to recoup these payments.
Reversal was expected given the conclusions reached by the district court. From here, the states—Texas, Indiana, Kansas, Louisiana, Nebraska, and Wisconsin—could ask for rehearing by the full panel of judges on the Fifth Circuit or appeal to the Supreme Court.
Background
In 2002, the Department...
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