A U.S. District Court recently ordered the Internal Revenue Service to repay Nebraska and five other states more than $839 million because of an unlawful Obamacare tax on state Medicaid programs.
Nebraska stands to be repaid $36.2 million.
“The federal government is not able to tax the states because of the unconstitutional constructs of Obamacare,” Nebraska Attorney General Peterson said, “and the portion illegally collected from Nebraska should be returned to our state.”
In February 2016, Nebraska joined a multistate lawsuit against the federal government over the Obama-era regulation that threatened to cut off Medicaid funds for Nebraska residents unless Nebraska taxpayers paid a portion of the Health Insurance Providers Fee to help fund Obamacare.
The court’s decision also means that five other states stand to be repaid Obamacare fees by the IRS: Indiana ($94.8 million), Kansas ($142 million), Louisiana ($172.5 million, Wisconsin ($88.9 million) and Texas ($304.7 million.)
The court ruling was issued Aug. 21.