A coalition of 20 Democratic attorneys general sued the Trump administration Thursday to block implementation of a rule they argue will undermine the Affordable Care Act.
The complaint was co-led by California, Massachusetts and New Jersey and filed in federal court in Massachusetts. The lawsuit alleges the Department of Health and Human Services (HHS) illegally made changes to the health law, which will make it harder for people to enroll and will shift costs to states.
The final rule, issued in June, would make numerous amendments to regulations governing federal and state health insurance marketplaces, which the administration estimates will cause almost 2 million people to lose their health insurance.
The attorneys general are asking the court to block portions of the rule from taking effect next month.
According to the lawsuit, the rule “truncates and eliminates enrollment periods, makes enrollment more difficult, adds eligibility verification requirements, and erects unreasonable barriers to coverage—making sweeping changes that reach far beyond and bear little relation to the primary harm HHS asserted as its justification: fraudulent enrollment by insurance brokers and agents.”
The rule also excludes coverage of gender-affirming care as an essential health benefit.
“Far from delivering on their promises to drive down costs and ‘make America healthier’ the Trump Administration’s HHS and CMS are doing their best to make it harder and more expensive for Americans to obtain health insurance and access care,” California Attorney General Rob Bonta said in a statement, referring to the Centers for Medicare and Medicaid Services.
In the lawsuit, the attorneys general argue the rule is unlawful, arbitrary and capricious and would cause significant harm to states and their residents.
All of the challenged marketplace changes implemented by the final rule will be harmful to individual consumers and state and local governments, the lawsuit claims.
According to the Department of Health and Human Services, the final rule is meant to limit improper enrollments and the improper flow of federal funds.
The rule is projected to save up to $12 billion in 2026 by “reining in wasteful federal spending, and refocusing on making health insurance markets more affordable and sustainable for hardworking American families.”
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