Lincoln, Neb. — Nebraska is in line to get a $36.2 million refund from the federal government as part of a lawsuit that said a fee on the state’s Medicaid program was unconstitutional.
Nebraska is one of six states that will receive a combined $389 million back from the Internal Revenue Service. Attorney General Doug Peterson said Wednesday he was pleased with the ruling.
Nebraska, Kansas and Wisconsin joined the lawsuit that was initially filed by Texas, Kansas and Louisiana in October 2015.
The states were threatened with a loss of Medicaid funding unless they paid a portion of a health insurance providers fee to help pay for the Affordable Care Act. It’s not clear whether the federal government will appeal.