The Herald Bulletin

Morning Update

State News

October 11, 2013

Indiana sees subsidy loophole in health care suit

INDIANAPOLIS — The lawsuit Attorney General Greg Zoeller and local schools have filed against the IRS could also end up blocking federal subsidies for residents enrolling in the health exchange set up as part of the federal health overhaul.

Zoeller and 15 schools argue in a suit filed earlier this week that the federal government lacks standing to require that any employee working more than 30 hours receive health benefits. The lawsuit also argues that states like Indiana with federally run exchanges are exempt from the employer mandate along with federal tax credits.

The lawsuit is part of a broader movement looking to spare businesses. But more than 500,000 lower- and lower-middle income residents could also lose the tax credits meant to make the health plans affordable.

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