Wisconsin, 5 other states sue Obama administration over ACA

Wisconsin and five other states are suing the Obama administration over its implementation of a portion of the Affordable Care Act, according to a release from the Wisconsin Department of Justice.

Under the ACA, health insurance provider fees were to be imposed upon health care insurance providers, according to the release. The purpose of the fee was to generate revenue from a windfall that Congress expected insurance companies to receive by increasing enrollment.

Instead, the Obama administration determined the states themselves are liable for the fees, officials said.

According to the release, the fees are substantial. The lawsuit seeks an injunction against the rule, and reimbursement from the federal government.

Officials said in 2014 and 2015, Wisconsin spent over $23 million in health insurance provider fees.

The lawsuit is pending in the U.S. District Court for the Northern District of Texas, according to the release. Texas is serving as lead plaintiff.