Louisiana Attorney General Jeff Landry is applauding the U.S. District Court for the Northern Division of Texas after its decision late Tuesday ordering the Internal Revenue Service to repay Louisiana and five other states more than $839 million because of a Obama-era HHS scheme to unlawfully impose a costly fee on state Medicaid programs.
“Obamacare has always been an economic house of cards, and this ruling has again exposed it for what it is: a money laundering scheme,” said General Landry. “This is a prime example of the deep administrative state doing something that Congress expressly forbid.”
“Even though the Affordable Care Act forbid imposing the Health Insurance Providers Fee (HIPF) on states, the federal government found a way to do it anyway,” explained General Landry. “The government threat to disapprove our managed care plans risked the loss of those Medicaid funds. Yesterday’s court victory not only means the IRS must repay the over $172 million that our Medicaid program was illegally forced to pay, but it also protects the State from having to pay millions more in future fees.”
"Once the money is returned to Louisiana, following any potential appeals, the Governor should return any net dollars directly to the hard-working Louisiana citizens who were forced to pay these costs," said General Landry.
“HIPF has always been an unconstitutional fee imposed upon our State’s workers,” concluded General Landry. "I commend our Solicitor General Liz Murrill and the entire multi-state coalition for achieving victory in this important case."