“The Affordable Care Act was designed to make healthcare more affordable and accessible. But once again, this Administration is moving in the wrong direction by adopting harmful provisions that push consumers into bare-bones plans and strip away critical protections,” California Attorney General Rob Bonta said in a statement. “
A coalition of attorneys general, as well as the governor of Pennsylvania, are suing the Trump administration over a newly-proposed federal rule that, if enforced, could make insurance purchased under the Affordable Care Act harder and more expensive to obtain.
“Time and time again, this administration has shown it’s willing to strip away the things people count on, whether it’s health coverage, food assistance, or basic protections, all to benefit a select few at the expense of working families,” said Oregon Attorney General Day Rayfield, a plaintiff in the lawsuit. “We’re fighting back against the federal administration’s efforts to make Americans sicker, poorer, and less free.”
The lawsuit more specifically seeks to prevent the U.S. Department of Health and Human Services and the Centers for Medicare & Medicaid Services from enforcing provisions of the 2027 Notice of Benefit and Payment Parameters. This rule, notes California Attorney General Rob Bonta, sets standards for ACA health plans offered in 2027; it introduces a number of changes to prevailing practices, including an expansion of so-called “catastrophic health insurance plans that are ineligible for premium tax credits, offer only limited coverage, and leave consumers facing significantly higher out-of-pocket costs than standard ACA plans.”
Provisions of the rule, issued in May, are similar to some already found unlawful last year. These including “onerous new application and income-verification requirements for people seeking to enroll.” The rule could also let some insurers charge patients more money than federal law allows for out-of-pocket costs. New York Attorney General Letitia James’s office estimates that about three out of every four people who purchase coverage outside of the standard ACA window will be forced to undergo additional eligibility verification, a procedure already found to be “arbitrary” by a federal court.
“The Affordable Care Act was designed to make healthcare more affordable and accessible. But once again, this Administration is moving in the wrong direction by adopting harmful provisions that push consumers into bare-bones plans and strip away critical protections,” Bonta said in a statement. “We are returning to court to challenge these unlawful changes. At a time when families are already facing rising costs, they cannot afford to pay more for coverage that gives them less.”
The lawsuit claims that the 2027 rule incorporates “nearly identical” provisions to 2025 orders found unlawful; the attorneys general also say that this year’s rule violates the Administrative Procedure Act, a federal law that dictates how, when, and why government agencies can change their internal rules, policies, and practices.
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