State of Indiana, public schools launch Obamacare lawsuit

INDIANAPOLIS – Fifteen Indiana school districts and the State of Indiana filed a lawsuit involving the Affordable Care Act.

The suit names the Internal Revenue Service, the United States Department of the Treasury and the United States Department of Health and Human Services as defendants. Indiana is the lead plaintiff in the suit.

The lawsuit revolves around the ACA’s mandate that employers provide health insurance to all employees who work more than 30 hours per week. According to the lawsuit, the Affordable Care Act will impose significant penalties on employers who fail to provide all of their full-time workers with affordable, minimum coverage. The state and schools said the penalties would result in “catastrophic financial consequences for Indiana public school corporations.”

To avoid those repercussions, school districts have reduced the hours for non-benefit eligible employees like bus drivers, instructional aides, cafeteria workers and substitute teachers. Schools said the long-term effects of these reduced hours will have a “long-term detrimental impact” on the education of Hoosier students.

The lawsuit challenges new IRS regulations involving the ACA. It also questions the authority of the federal government to impose the employer mandate on the State of Indiana and its public schools.

Bose McKinney & Evans LLP is representing schools in the lawsuit. Indiana Attorney Greg Zoeller will represent the state.

School corporations involved in the lawsuit:

  • Benton Community School Corporation
  • Community School Corporation of Eastern Hancock County
  • John Glenn School Corporation
  • Madison Consolidated Schools
  • Metropolitan School District of Martinsville
  • Monroe-Gregg School District
  • Mooresville Consolidated School Corporation
  • North Lawrence Community Schools
  • Northwestern Consolidated School District of Shelby County
  • Perry Central Community Schools
  • Shelbyville Central Schools
  • South Henry School Corporation
  • Southwest Parke Community School Corporation
  • Southwestern Jefferson County Consolidated School Corporation
  • Vincennes Community School Corporation


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