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State, public schools sue federal government over Obamacare

October 8, 2013

Fifteen Indiana school districts and the state of Indiana have filed a lawsuit challenging the federal health care law and subsidies that are available to Hoosiers under rules set by the IRS.

The lawsuit argues that Hoosiers should not qualify for tax subsidies for insurance purchased through the federally run health care exchange – or online marketplace – because the original law did not authorize them.

The suit says the Affordable Care Act – known as Obamacare – only authorized subsidies for people who purchase insurance through state-based exchanges.

The Internal Revenue Service has since expanded the rules for federal subsidies so they are available to all qualified Americans who purchase insurance through an exchange, whether it’s run through the state or federal government, the suit says.

The school districts are represented in the lawsuit by Bose McKinney & Evans LLP. The school corporations involved include Community School Corporation of Eastern Hancock County, Shelbyville Central Schools and Vincennes Community School Corporation.

The IBJ has more about the lawsuit.
 

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