Louisiana Could Be Receiving $172 Million Due to Texas Ruling

(WWL.com) - A decision by the US District Court in Northern Division of Texas has ordered the IRS to repay Louisiana and five other states more than $839 million due to an unlawfully imposed fee on state Medicaid programs. It’s a decision Louisiana Attorney General Jeff Landry is applauding because if the decision stands, the IRS will have to repay the state over $172 million.

The Louisiana Department of Health says it’s reviewing the ruling to determine what it could mean for the state. Landry says fees were imposed on health insurance companies by the government for the influx of new customers.

"The Obama Administration allowed the MCOs & insurance companies to simply send the bill to the states, and force the states to pay the bill directly," adds Landry

Landry says taxpayers should have never had to foot the bill for those fees.

"The insurance companies should have been paying this fee.  It should have been coming out of there profits, not out of the pockets of the taxpayers of Louisiana," states the Attorney General.

Landry believes the ruling will protect the state from paying millions more in the future.

"Not only is the $172 million coming back, it also means there was possibly another $100 million in the fee for this year," says Landry.