Kobach Sues Kansas Employee Insurer Aetna for ‘Misappropriating’ State Funds

Kobach sues Kansas employee insurer Aetna for ‘misappropriating’ state funds

TOPEKA — Kansas Attorney General Kris Kobach has filed a lawsuit accusing Aetna Inc. of “misappropriating” state funds through a mechanism found to violate federal law in other court cases, an allegation the health insurer denies. Amber Smith, deputy attorney…

Kansas Sues Aetna Over Health Fund Misuse

Kansas Attorney General Kris Kobach filed a state court lawsuit against Aetna on June 24. The suit accuses the insurer of misusing tens of millions of dollars while it managed the state employee health plan. Aetna has acted as the plan’s third-party administrator since at least 2014. State officials are pursuing relief under the Kansas False Claims Act. A Pattern of Self-Interest, State Claims The complaint paints a picture of repeated misconduc…

Kansas AG Sues Aetna, Alleging the Insurer Diverted Million From State Employee Health Plan for Its Own Benefit

Kansas Attorney General Kris Kobach is suing Aetna, accusing the insurer of secretly diverting state employee health plan funds for its own benefit. The lawsuit filed Wednesday, June 24, in Shawnee County District Court, claims Aetna deployed a practice known as “cross-plan offsetting.” Kobach claims this is a practice that uses money from Kansas’s self-funded employee health plan to pay itself back for overpayments it made on entirely unrelated…