WASHINGTON (Legal Newsline) — Texas Attorney General Ken Paxton has announced that three more states have joined his office’s lawsuit against the Obamacare rule that mandates states pay taxes on Medicaid managed care organizations.
The states joining Texas are Indiana, Nebraska and Wisconsin.
According to the attorney general’s office, the tax is unconstitutional yet the Obama administration is allegedly threatening Medicaid programs of states that do not pay. This tax would be more than $120 million annually for the state of Texas.
“More states are realizing this is yet another example of the Obama administration writing the law through bureaucratic rule-making, without any consideration for taxpayers or input from lawmakers or the states,” Paxton said. “The pain is already being felt largely by middle class wage earners, and, now, the federal government is passing on additional taxes through the states.
"I will continue fighting to protect Texans from this unconstitutional tax funding the insolvent Obamacare mandate.”
Texas originally filed the suit in October 2015, joined by Kansas and Louisiana.