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Saturday, June 27, 2026

Kobach sues Aetna for false claims in administration of State Employee Health Plan - Newstalk KZRG

TOPEKA – (June 26, 2026) – Kansas Attorney General Kris Kobach announced a new lawsuit today against Aetna Inc., one of two third-party administrators of the State Employee Health Plan.

“Despite its long relationship with the State, Aetna has disregarded its fiduciary duty to the state and chosen to misappropriate Kansas funds to pay itself. That ends today,” said Amber Smith, Deputy Attorney General of the Public Protection Unit.

In a new lawsuit, the Attorney General alleges Aetna has deployed a scheme called “cross-plan offsetting” that uses payments from Kansas’ self-funded insurance program for state employees to pay itself back when Aetna overpays providers on unrelated fully insured plans. Aetna also charges the State hidden or obfuscated fees for employees to use out-of-network health care providers.

These practices deprive the State Employee Health Plan accurate accounting of expenses and prevent the State from adequate management of health care costs.

“Aetna is presenting false claims to the State, wasting taxpayer money all the while keeping the profits for themselves,” Smith said.

The lawsuit was filed on June 24 in Shawnee County District Court. The State is seeking disgorgement of ill-gotten gains, restitution, penalties, and an order forcing Aetna to stop these false practices.

“Kansas is the first state to sue Aetna for misusing state health plan dollars to benefit the health plan administrator. However, in other private lawsuits, courts have ruled against...



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