Texas again sues over federal health care law

Texas again sues over federal health care law

AUSTIN, Texas (AP) - Attorney General Ken Paxton has sued the Obama administration over a fee that its signature health law imposes on states via insurers operating under the Medicaid program.

Paxton's office joined Kansas and Louisiana in filing suit Thursday.

The Republican argued that the "Health Insurance Providers Fee" forces "states to effectively pay an unconstitutional tax." He said it cost Texas $86 million in 2013 and around $120 annually since then.

The fee applies to private insurers, but Paxton said it eats into public budgets since states reimburse private firms under Medicaid.

Texas has been part of numerous lawsuits aiming to dismantle the contentious federal health care law - which has twice been upheld by the U.S. Supreme Court.

Paxton, meanwhile, is himself under felony indictment for securities fraud.