Democratic attorneys general sue to block changes to ACA health insurance marketplaces

A group of Democratic attorneys general sued Thursday to block the implementation of portions of a Department of Health and Human Services rule set to go into effect next month that they say could lead to nearly 2 million people losing their health insurance.

The attorneys general of 20 states, including New Jersey, California and Massachusetts, joined with Pennsylvania Governor Josh Shapiro, a Democrat, to file the lawsuit in federal court in Massachusetts. They argue that the department’s actions illegally change the rules governing state and federal health insurance marketplaces created under the Affordable Care Act and therefore will push more health care costs onto the states.

The final rule creates barriers to enrollment for health insurance sold on marketplaces and will increase insurance premiums, co-pays and other out-of-pocket costs they claim. The Trump administration has said that up to 1.8 million people could lose their health insurance as a result, according to the lawsuit. The attorneys general are asking the court to block portions of the rule from taking effect next month.

For Subscribers

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSRecords reveal tumultuous marriage between killed New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

FOR SUBSCRIBERSCornell rape allegation spotlights stringent New York state laws that have long drawn criticism

FOR SUBSCRIBERSThe debate over AI’s future rages on both coasts

FOR SUBSCRIBERSDecades-old march dispute reignites in Northern Ireland, threatening political crisis

“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,” New Jersey Attorney General Matthew Platkin said in a statement.

A representative for HHS did not immediately respond to a request for comment. The rule, finalized by the HHS’s Centers for Medicare & Medicaid Services in June, includes provisions meant to limit improper enrollments and the improper flow of federal funds, according to CMS.

For Subscribers

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSRecords reveal tumultuous marriage between killed New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

FOR SUBSCRIBERSCornell rape allegation spotlights stringent New York state laws that have long drawn criticism

FOR SUBSCRIBERSThe debate over AI’s future rages on both coasts

FOR SUBSCRIBERSDecades-old march dispute reignites in Northern Ireland, threatening political crisis

The lawsuit challenges parts of the rule that shorten enrollment periods and charge a monthly $5 fee for some marketplace shoppers. It also targets a provision barring transgender health care from the list of essential health benefits subject to mandatory coverage under the Affordable Care Act.

The lawsuit claims the rule imposes burdensome and expensive paperwork and will force consumers to spend millions to prove eligibility for coverage and subsidies. The states say the rule is arbitrary and capricious and was enacted in violation of federal administrative law.