Indianapolis, In. — Attorney General Curtis Hill welcomed a U.S. District Court decision ordering the Internal Revenue Service to repay Indiana and five other states more than $839 million because of an unlawful Obamacare tax on state Medicaid programs. Of that total, the court ordered that approximately $95 million should be returned to Indiana.
Indiana joined in a multistate lawsuit filed in October 2015 against the federal government over an Obama-era regulation. Under that rule, federal authorities threatened to withhold Medicaid funds unless state taxpayers paid a portion of the Health Insurance Providers Fee to help fund the Affordable Care Act, otherwise known as Obamacare.
“The feds wrongfully took Indiana’s money to fund Obamacare,” Attorney General Hill said. “Since the federal government cannot tax the states, we are pleased to return this illegally collected money to Hoosiers.”
The five other states that now can expect repayments from the IRS are Kansas, Louisiana, Nebraska, Texas and Wisconsin.
Indiana, meanwhile, remains involved in efforts challenging the overall constitutionality of the Affordable Care Act.
Tuesday’s court ruling is attached.
