The lawsuit says Aetna also charged the state hidden or obfuscated fees for out-of-network claims through a repricing structure that has been challenged in federal court. Kobach is asking the court to order Aetna to stop practices that use state funds to offset costs for other plans and to require restitution to the state.
Amber Smith, a deputy attorney general in the Public Protection Unit, said Aetna failed in its fiduciary duty and chose to misappropriate Kansas funds to pay itself. An Aetna spokesperson denied wrongdoing and said the company would defend itself, asserting it is committed to safeguarding money provided by Kansas taxpayers for the state employee health plan.