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9 More School Districts Join Health Care Lawsuit

In total, 24 schools have joined a lawsuit saying the government cannot penalize schools for not providing health insurance to their employees.

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Photo: John Girton (flickr)

Employers, including schools, are being required to provide health insurance for their employees that work more than 30 hours per week or face financial penalties.

Twenty-four school districts are now challenging whether the federal government can penalize them for not providing health insurance under the Affordable Care act.

The state of Indiana and 15 school districts originally signed on to the lawsuit last month. With the nine new school corporations that brings the total number to 24.

The lawsuit alleges the Affordable Care Act does not specifically allow the federal government to impose financial penalties in states that opted to use the federal instead of a state-based health exchange. It says penalties can’t be applied to government employers because that would mean the federal government is taxing a state agency—something outlawed in the Tenth Amendment.

MSD of Martinsville is one of the school corporations that has joined the suit. Officials there declined to be recorded but recently issued a statement:

“We always strive to be good stewards of tax dollars in educating our community’s students, but our school corporation’s efforts are undermined by the IRS overstepping its bounds that Congress set.”

More schools could still join the suit, but the law firm in charge of it is asking any additional schools considering joining the challenge to decide by the end of the month.

Gretchen Frazee

Gretchen Frazee is a reporter/producer for WFIU and WTIU news. Prior to her current role, Frazee worked as the associate online content coordinator for WFIU/WTIU. She graduated from the University of Missouri-Columbia where she studied multimedia journalism and anthropology. You can follow her on Twitter @gretchenfrazee.

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