Democratic AGs Sue to Block HHS Rule,Citing Potential Loss of Health Insurance for Millions
A coalition of 20 Democratic state attorneys general and Pennsylvania’s governor have filed a federal lawsuit challenging a new Department of Health and Human Services (HHS) rule,arguing it will create barriers to health insurance enrollment,increase costs,and potentially lead to nearly 2 million people losing coverage.
A notable legal battle has erupted over a new Department of Health and Human Services (HHS) rule set to take effect next month. Twenty Democratic attorneys general, joined by Pennsylvania Governor Josh Shapiro, have filed a lawsuit in federal court in Massachusetts, aiming to block key provisions of the rule. Their central argument is that the HHS is illegally altering the framework of health insurance marketplaces established under the affordable Care Act (ACA), which they contend will shift substantial healthcare costs onto the states.
The attorneys general assert that the finalized rule, issued by the Centers for Medicare & Medicaid Services (CMS) in June, will erect new obstacles for individuals seeking health insurance through the marketplaces. They predict this will result in higher insurance premiums, increased co-pays, and greater out-of-pocket expenses for consumers. The lawsuit highlights a Trump administration estimate that up to 1.8 million people could lose their health insurance as a direct consequence of these changes.
New Jersey attorney General Matthew Platkin expressed strong opposition, stating, “As New Jersey and other states prepare for the 2026 open enrollment period, the trump Administration is seeking to cause confusion and chaos in the healthcare marketplace, increase costs for our state, and create barriers to enrollment.”
while a representative for HHS did not promptly provide a comment, CMS has indicated that the rule includes measures designed to curb improper enrollments and the misuse of federal funds.
The lawsuit specifically targets several aspects of the rule. It challenges provisions that shorten enrollment periods and introduce a $5 monthly fee for certain marketplace shoppers. Furthermore, the legal challenge includes a provision that removes transgender healthcare from the list of essential health benefits mandated for coverage under the ACA. The plaintiffs argue that these changes impose “burdensome and expensive paperwork” and will force consumers to incur significant costs to prove their eligibility for co-insurance.
