MADISON (WKOW) — The Wisconsin Department of Justice has filed a new lawsuit to prevent President Trump’s Administration from taking more than $30 million from the Wisconsin Medicaid and Children’s Health Insurance Program, according to Attorney General Brad Schimel.
The suit was filed Thursday, along with a motion for a temporary restraining order. Wisconsin joins Texas, Louisiana, Indiana, Kansas and Nebraska in the lawsuit.
“On behalf of Wisconsin, I will continue to fight to protect our healthcare dollars,” said Attorney General Schimel. “Our healthcare 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 says this new lawsuit relates to the Health Insurance Providers Fee, which is a tax imposed as part of the Affordable Care Act. Congress exempted states from paying the tax, but Schimel says the IRS and Department of Health and Human Services have imposed the tax as to “illegally require the states to pay it.”
Schimel says in 2016, he and five other attorneys general successfully sued to strike down a rule that allowed the HIP fee to be imposed upon the states. The U.S. District Court recently ordered the federal government to repay $89 million to Wisconsin as a result of the HIP Fee imposed in years 2014, 2015, and 2016. Congress imposed a moratorium on the fee for 2017, according to Schimel.
Schimel says despite the ruling the IRS and HHS are trying to impose the tax again this year. The tax would be due next Tuesday and is more than $30 million for Wisconsin, Schimel says.