State, Schools Suing Over Obamacare Employer Mandate

Fifteen public schools are joining the state in suing the IRS and other federal agencies over the Affordable Care Act, commonly known as Obamacare.

The suit stems from the employee mandate portion of the law.

Jim Hamilton of the Indianapolis law firm Bose, McKinney & Evans, which is representing the schools, says the suit challenges the authority of the federal government to impose the mandate on the state and public school corporations.

"As a result of the employer mandate, public schools throughout the state of Indiana have had to reduce employee hours, certain specified employees, to under 30 hours per week to avoid very significant penalties under the Affordable Care Act," he said. 

The law calls for penalties on employers who fail to provide health insurance if they have 50 or more employees working 30 or more hours per week.

"The requirement that schools provide affordable, minimum value coverage to all employees who work in excess of 30 hours per week has proven to be very difficult for Indiana public schools," said Hamilton.  "Public schools simply do not have the money to provide coverage to all employees who work in excess of 30 hours per week."

Indiana House Minority Leader Scott Pelath, D- Michigan City, said on 90.1 WFYI's "No Limits" that the law isn’t perfect, but it’s important to focus on the overall goal.

"We have to be able to make sure we are a healthier nation because people can go to the doctor and not in the emergency room, and that our middle class isn't going bankrupt because of exploding health care costs, and then, finally, the taxpayers aren't going bankrupt because of exploding health care costs," Pelath said.  "Those are the important things.  The finer points can be dealt with.  We can't get so far down in the weeds that we lose sight of the big things."

The employer mandate was delayed for a year and is scheduled to take effect in 2015.

Sen. Jim Merrit, R-Indianapolis, responded on "No Limits" that the lawsuit points to the ongoing concerns with the law.

"It appears to me that people are still confused.  People don't know exactly how this is going to be ironed out," said Merritt.  "It's such a a large piece of legislation and large law that it may be some time before everybody understands what it's all about."

Plaintiff School Corporations:

• 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