P.O. Box 7857

P.O. Box 7857

Madison, WI 53707-7857

BRAD D. SCHIMEL

ATTORNEY GENERAL

NEWS RELEASE

AG Schimel Fights Obamacare’s Attack on Religious Liberty,

Unlawful Mandates, Fees and Restrictions

March 3, 2016Johnny Koremenos

608-266-1220

MADISON - President Obama is visiting Milwaukee this afternoon to tout the supposed success of the Affordable Care Act or “Obamacare.” Wisconsin Attorney General Brad Schimel, who is suing the Obama Administration for its repeated disregard for the rule of law and legislative process, is telling the other side of the Obamacare story.

“Wisconsinites should not be fooled by President Obama’s rhetoric and pageantry,” said Attorney General Schimel. “Significant aspects of Obamacare are unlawful. While President Obama is celebrating what he perceives as a measure of success of his healthcare program, I am fighting vigorously against its attack on religious liberty, and the unlawful mandates, fees, and restrictions it imposes on taxpayers, employers and our state. I’m proud to lead Wisconsin in upholding the rule of law and battling against the federal government’s unconstitutional intrusion into the affairs of our state and private citizens.”

Wisconsin is currently engaged in the following three lawsuits against the Affordable Care Act:

Zubik v. Burwell (U.S. Supreme Court). In January 2016, 20 states, including Wisconsin, filed an amicus curiae brief in the U.S. Supreme Court challenging the ACA’s contraceptive-services mandate and the Obama Administration’s refusal to accommodate sincerely held religious beliefs. The brief supports the position of several private religious institutions, including the Little Sisters of the Poor, Catholic charities, schools, and priests, and a group of private colleges, which sued the Obama Administration over the contraceptive mandate. Under the Obama Administration’s enforcement of the mandate, these religious groups must authorize and facilitate insurance coverage for contraception, sterilization, abortifacients, and related education and counseling, contrary to their religious beliefs. Wisconsin has a very strong interest in this litigation because the Wisconsin Constitution has stronger religious liberty protections than most states and even the U.S. Constitution. The case is set for oral argument on March 23, 2016, and a decision is expected by the end of June.

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AG Schimel release

Page Two

Texas, Wisconsin et al. v. United States(Federal Court, Northern District of Texas). In February 2016, a coalition of six states, including Wisconsin, sued the Obama Administration over its implementation of a portion of the ACA known as the “Health Insurance Providers Fee.”Under the specific terms of the ACA, these fees were to be imposed upon healthcare-insurance providers. The purpose of the fee was to generate revenue from a windfall that Congress expected insurance companies to receive by increasing enrollment. Instead, after those windfalls did not materialize, the Obama Administration has determined that the States themselves are liable for these fees. These fees are substantial. For example, in 2014 and 2015, Wisconsin spent more than $23 million in Health Insurance Provider Fees. The lawsuit seeks an injunction against the rule, as well as reimbursement from the federal government. The case is pending.

Central United v. Burwell (U.S. Court of Appeals, D.C. Circuit). On February 29, 2016, Attorney General Brad Schimel defended Wisconsin’s right to promote and regulate insurance products sold within the State by challenging the Obama Administration’s new “Fixed-Indemnity Rule.” Fixed-indemnity insurance policies pay a fixed amount of money upon the occurrence of an event; for example, a fixed-indemnity policy may pay a policyholder $100 for each day in a hospital or $50 for each doctor visit. In the new rule, the Obama Administration had attempted to force all customers who wanted to purchase fixed-indemnity insurance to also purchase a policy under the ACA, even if the customer did not want, or could not afford, an ACA-compliant policy. A federal district court judge struck down the rule in 2015, and the Obama Administration appealed. In its amicus curiae brief, Wisconsin argued that the decision should be affirmed and that the Obama Administration should not be permitted to interfere with the States’ historic and traditional authority to regulate insurance. Ten other states joined Wisconsin’s amicus curiae brief: Arkansas, Georgia, Louisiana, Michigan, Nebraska, Oklahoma, South Carolina, Texas, Utah, and West Virginia. Oral argument is scheduled for April 2016, and a decision is expected in the summer.

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