A coalition of attorneys general from 21 states, along with Pennsylvania Gov. Josh Shapiro, have filed a lawsuit challenging a federal rule that they allege undermines the Affordable Care Act and makes health insurance more expensive and harder to obtain for millions of Americans. The lawsuit seeks to block provisions of the Trump administration’s ACA payment rule for 2027 health plans, which the same attorneys general previously opposed in a March comment letter.
“The Trump administration’s policies have already caused over a million Americans to lose coverage,” New Jersey Attorney General Jennifer Davenport said. “New Jersey families are already reeling this year from the president’s refusal to extend ACA tax credits, his tariffs and his war. Now, instead of lowering health insurance costs, the Trump administration is reducing coverage and raising costs.”
Although a federal court vacated several provisions of the previous rule that were in question, the plaintiffs said the 2027 ACA rule reinstates a number of the elements that were blocked. The also said the regulation includes expansion of catastrophic health plans that goes beyond limits established in the law and allows catastrophic- and bronze-tier plans to circumvent the out-of-pocket maximums established by law. They also object to the way the changes were adopted “without adequate explanation or a meaningful response” to comments from the coalition, which would be considered “arbitrary and capricious” under the Administrative Procedure Act.
California Attorney General Rob Bonta is part of the coalition.
“The Affordable Care Act was designed to make health care 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,” he said. “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.”
Late last month, the U.S. Department of Health and Human Service filed an appeal to overturn a Maryland judge’s decision to overturn part of the previous rule.
Joining Bonta, Davenport and Shapiro in the lawsuit are the attorneys general of Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, New York, Oregon, Rhode Island, Vermont, Virginia, Washington and Wisconsin.