In Kathleen Papa and Professional Homecare Providers, Inc. v. Wisconsin Department of Health Services, 2020 WI 66, the Wisconsin Supreme Court addressed the authority of the Department of Health Services (DHS) to recoup payments made to Medicaid service providers. The Court determined DHS’s policy allowed recoupment even in cases when it could verify that services were actually provided and claims were appropriate and accurate. This policy exceeded DHS’s recoupment authority, according to the Court, because it was not “explicitly permitted by a statute or by a [properly promulgated] rule” as required by s. 227.10 (2m), Stats. This issue brief provides an overview of the Court’s decision.