Wisconsin files new lawsuit against ACA health insurance providers fee

Seeks to stop federal government from collecting $30 million from state


The Wisconsin Department of Justice has filed a new lawsuit against the federal government over a fee for health insurers under the Affordable Care Act.


State Attorney General Brad Schimel announced last week the state had filed the lawsuit, along with a motion for a temporary restraining order against President Donald Trump’s Administration, as the deadline nears for Wisconsin to pay more than $30 million through the health insurance providers fee.

The suit was joined by Texas, Louisiana, Indiana, Kansas and Nebraska.

The HIP Fee, which took effect in 2014, was imposed under the ACA and intended to help fund state exchanges.

In 2015, Wisconsin and five other states successfully sued to strike down a rule that allowed the HIP fee to be imposed on the states.

As a result of that ruling, the U.S. District Court recently ordered the federal government to repay $89 million to Wisconsin for the HIP Fee that was imposed in 2014, 2015 and 2016. Congress established a one-year moratorium on the fee for 2017, but the fee resumes in 2018 and Wisconsin is on the hook to pay more than $30 million.

“On behalf of Wisconsin, I will continue to fight to protect our health care dollars,” Schimel said. “Our health care programs should not be overburdened with this illegal tax that threatens Wisconsin’s ability to care for those who need medical services the most.”

Schimel and Texas Attorney General Ken Paxton filed a separate lawsuit in February on behalf of 20 states, challenging the constitutionality of the ACA. He argued that when Congress voted to remove the individual mandate tax last year, the constitutional underpinnings of the law fell apart. The federal court is expected to issue a decision on that case later this year.

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