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Wisconsin to get $89 million in court ruling over Affordable Care Act

August 28, 2018

The Internal Revenue Service must pay back $89 million to Wisconsin for an Affordable Care Act fee related to the state’s Medicaid program, according to a court ruling in Texas last week.

The Aug. 21 ruling, by U.S. District Judge Reed O’Connor, orders more than $839 million to six states: Indiana, Kansas, Louisiana, Nebraska, Texas and Wisconsin. No information was available on a possible appeal.

In 2015, the states sued over an Obama-era regulation that threatened to cut off Medicaid funds unless the states paid part of a health insurance provider’s fee to help fund the 2010 health care law, also known as Obamacare, according to Texas Attorney General Ken Paxton.

In February, Paxton and Wisconsin Attorney General Brad Schimel filed a separate lawsuit on behalf of 20 states seeking to overturn the Affordable Care Act, arguing it is unconstitutional as amended by the recent federal tax bill. A hearing on that case will be held next week, Paxton said.

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