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.