15 Indiana School Districts Sue Obamacare as State Faces $56M in Potential Penalties

October 9, 2013 - 4:39 PM

To no one's surprise, insurers are "scared to death" of Obamacare.  And, school districts also seem to be wary of this massive federal power grab, as fifteen school districts in Indiana have filed suit to block Obamacare.

Teachers are already seeing their hours cut.  In New Jersey, for example, the Hamilton school district decided to limit their teachers to a four-day week due to Obamacare.

In Indiana, the state's attorney general, Greg Zoeller, is joining a lawsuit filed by fifteen school districts that are seeking to block Obamacare (see IN School District Lawsuit.pdf).

As a state Financial_Management_Circular details, under Indiana state law, a full-time employee is defined as a person who works at least 37.5 hours a week - but, Obamacare defines a full-time worker as working 30 hours a week.

As a result, school districts will be mandated to offer health insurance to part-time coaches, substitute teachers, and instructors of students with learning disabilities.

If employers do not comply, they face a $2,000 fine per employee, according to the Office of the Indiana Attorney General:

"Under the employer mandate, large employers who do not offer minimum essential coverage face penalties of $2,000 per employee for all full-time employees in the organization (after the first 30), even if just one employee obtains federally-subsidized insurance through the IRS regulation.

"For example, if a private company employing 1,000 people does not offer minimum essential coverage and some workers then obtain subsidized coverage through health-care exchanges, the IRS could impose penalties of $2,000 for 970 employees, or a total $1.94 million."

Indiana's state government could be hit with at least $56 million in Obamacare penalties, the attorney general's office notes:

"For State government, with approximately 28,000 employees in the executive branch (not including the legislative and judicial branches), the potential penalty for non-compliance could be approximately $56 million or more."

Lastly, the scandal-plagued IRS will be in charge of enforcing these regulations.

The attorney general's office also lists the names of the school districts involved in the lawsuit as:

  • Metropolitan School District of Martinsville, Martinsville
  • Perry Central Community Schools, Leopold
  • Benton Community School Corporation, Fowler
  • Community School Corporation of Eastern Hancock County, Charlottesville,
  • John Glenn School Corporation, Walkerton
  • Monroe-Gregg School District, Monrovia
  • Mooresville Consolidated School Corporation, Mooresville
  • North Lawrence Community Schools, Bedford
  • Northwestern Consolidated School District of Shelby County, Fairland
  • Shelbyville Central Schools, Shelbyville
  • Southwest Parke Community School Corporation, Montezuma
  • Vincennes Community School Corporation, Vincennes
  • Madison Consolidated Schools, Madison
  • South Henry School Corporation, Straughn
  • Southwestern Jefferson County Consolidated School Corporation, Hanover