Doug Peterson

Nebraska Attorney General

Nebraska Wins Multistate Obamacare Tax Lawsuit

Lincoln—Attorney General Doug Peterson is pleased by yesterday’s announcement of the decision from the U.S. District Court ordering 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. Of that total amount, Nebraska stands to be repaid $36,238,918.

“The federal government is not able to tax the states because of the unconstitutional constructs of Obamacare,” 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 the health needs of Nebraska citizens 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 ($94,801,483), Kansas ($142,121,776), Louisiana ($172,493,095), Wisconsin ($88,938,850) and Texas ($304,730,608).

View a copy of the ruling here: