Wisconsin, 5 other states, sue Obama Administration over Affordable Care Act

Feb 24 2016

Today, a coalition of six states, including Wisconsin, sued the Obama Administration over its implementation of a portion of the Affordable Care Act (ACA) known as the “Health Insurance Providers Fee.”   

 

Under the ACA, these fees were to be imposed upon healthcare-insurance providers. The purpose of the fee was to generate revenue from a windfall that Congress expected insurance companies to receive by increasing enrollment.  Instead, the Obama Administration has determined that the States themselves are liable for these fees.  These fees are substantial.  For example, in 2014 and 2015, Wisconsin spent over $23 million in Health Insurance Provider Fees. The lawsuit seeks an injunction against the rule, as well as reimbursement from the federal government.

 

The lawsuit is pending in the U.S. District Court for the Northern District of Texas, and Texas is serving as lead plaintiff.  Wisconsin is being represented in this litigation by Deputy Solicitor General Dan Lennington.

 

A copy of the lawsuit is here: