Nebraska stands to receive more than $36 million from a federal court ruling which ordered the Internal Revenue Service to repay Nebraska and five other states more than $839 million from taxes assessed against their Medicaid programs.
The taxes were assessed as part of the Affordable Care Act.
“The federal government is not able to tax the states because of the unconstitutional constructs of Obamacare,” Attorney General Peterson said in a written statement released by his office, “and the portion illegally collected from Nebraska should be returned to our state.”
Nebraska joined a multistate lawsuit against the federal government in 2016 over a regulation enacted during President Obama’s administration which threatened to cut off Medicaid funds unless Nebraska paid a portion of the Health Insurance Providers Fee, used to help fund the ACA.
The court’s decision also means that five other states stand to be repaid Obamacare fees by the IRS: Indiana ($94,801,483), Kansas ($142,121,776), Louisiana ($172,493,095), Wisconsin ($88,938,850) and Texas ($304,730,608).