Ohio v. United States

Ohio sued the U.S. Department of Health and Human Services, alleging that the federal government illegally collected certain monies from the state in order to supplement the Affordable Care Act’s Transitional Reinsurance Program, 42 U.S.C. 18061. The Program is a premium-stabilization arrangement that aims to combat volatility in the individual market by collecting payments from “health insurance issuers” and “group health plans” and distributing those payments over a three-year period to health insurance issuers that cover high-risk individuals in the individual market. Arguing that the Program’s mandatory payment scheme applies only to private employers and not to state and local government employers, Ohio sought a refund of all payments made on its behalf and a declaration that the Program would not apply to the state in the future. Ohio also argued that application of the Program against the state violated the Tenth Amendment and principles of intergovernmental tax immunity. The Sixth Circuit affirmed dismissal, holding that the Program applies to state and local government employers just as it applies to private employers, and that the Program as applied to Ohio does not violate the Tenth Amendment. View "Ohio v. United States" on Justia Law