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Closed Case

*Kathleen Papa v. DHS – Act 21 Explicit Authority & Unlawful Guidance

Regulatory Certainty

*Great Lakes Legal Foundation Case

On July 9, 2020, the Wisconsin Supreme Court unanimously held the Department of Health Services (DHS) Medicaid auditing and claw-back policies exceeded DHS’s explicit recoupment authority. The decision provided a huge win for the regulated community as the court recognized Act 21’s explicit authority requirement as the first hurdle an agency must clear before imposing regulatory mandates.

Why This Case is Important

Agencies Have Only that Authority Explicitly Delegated to Them by the Legislature. Administrative agencies’ ever-expanding power and reach must be constrained by requiring them to operate within the four corners of their explicit statutory authorities. DHS’s previously maintained a recoupment policy for any compliance or documentation error, which was not provided for under the law and threatened the livelihood of businesses and family entrepreneurs otherwise proving compliant services. 

Key Documents

Court:

Wisconsin Supreme Court

Appeal No.:

Stage:

Closed

Our Involvement:

Amicus
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