Texas and five other states are suing the federal governmentover how the government applied the Patient Protection and Affordable Care Act (PPACA)health insurer fee to some of the carriers that runthe states' managed Medicaid and managed Children's HealthInsurance Program (CHIP) plans.

The states bringing the suit, State of Texas et al. vs. UnitedStates of America et al., say, in a complaint filed in the U.S.District Court for the Northern District of Texas (Civil Action Number7:15-CV-001510O), that the court should exempt managedMedicaid and managed CHIP plans fromthe fee.

The fee is really a tax that the federal government is imposing onstate governments, and that kind of intergovernmental tax isunconstitutional, the states say.

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Allison Bell

Allison Bell, a senior reporter at ThinkAdvisor and BenefitsPRO, previously was an associate editor at National Underwriter Life & Health. She has a bachelor's degree in economics from Washington University in St. Louis and a master's degree in journalism from the Medill School of Journalism at Northwestern University. She can be reached through X at @Think_Allison.