INDIANAPOLIS– Fifteen Indiana public school districts – and the state Attorney General – on Tuesday sued the federal government over mandates and penalties from the Affordable Care Act.
The suit challenges a new IRS regulation that imposes the costly "employer mandate" requirements of the Affordable Care Act onto state and local governments.
The plaintiffs are ultimately seeking a judgment in their favor, and an immediate injunction that would prevent the IRS from financially penalizing the state and its political subdivisions.
The suit contends the Affordable Care Act or ACA as passed by Congress does not allow financial penalties in states that did not create their own health insurance exchanges; and that the financial penalties – which are based on the total number of employees – cannot be applied to government employers.
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