Louisiana Attorney General: Health Lawsuit Could Yield $172M


BATON ROUGE, La. (AP) — Louisiana's attorney general says the state Medicaid program could get a refund of $172 million paid under the federal health overhaul, if a court ruling in Texas stands.

Attorney General Jeff Landry touted the federal court decision Wednesday, but acknowledged it could be appealed.

Six states are involved in the lawsuit. Their Medicaid programs reimbursed managed-care organizations that coordinate services for Medicaid patients for a fee charged under the federal Affordable Care Act.

By reimbursing the managed-care plans, the states effectively paid the fee to the IRS.

The states challenged the $839 million in pass-through charges as unlawful taxes on Medicaid programs. Landry's office says Louisiana's portion topped $172 million.

The Louisiana Department of Health said Thursday it's reviewing the ruling to determine what it could mean for the state.

Categories: Healthcare, Legal, Today’s Business News