Indiana school districts can continue to sue over health care reform, after a federal judge refused to dismiss the 2013 lawsuit from 39 districts.
The districts claim the federal government should not be able to tax them if they don't offer health care to all full-time employees. They also object to the law's requirement to offer health coverage to anyone working 30 hours per week, calling it an undue financial burden.
The 39 districts joined together last year to challenge the Affordable Care Act.
The lawsuit also argued that penalties can't be applied to government employers, because that would mean the federal government is taxing a state agency—something outlawed in the Tenth Amendment.