Nevada Attorney General Joins Multistate Coalition in Challenging Trump Administration's Health Insurance Rule

Strategic Insights -

A multistate coalition, led by Nevada Attorney General Aaron D. Ford, has filed a lawsuit challenging the Trump administration's final rule on health insurance marketplaces. The rule, which becomes effective on August 25, would cause up to 1.8 million people to lose their health insurance, while increasing insurance premiums and out-of-pocket costs for millions more. The attorneys general argue that the rule is arbitrary and capricious, violating the Administrative Procedure Act (APA) and imposing significant barriers to obtaining healthcare under the Affordable Care Act (ACA).

Key Takeaways:

  • The Trump administration's final rule is estimated to cause up to 1.8 million people to lose their health insurance, with millions more facing increased insurance premiums and out-of-pocket costs.
  • The rule excludes coverage of gender-affirming care as an essential health benefit (EHB) under the ACA.
  • The lawsuit argues that the HHS and CMS rule is arbitrary and capricious, contrary to law, and violates the APA.
  • The coalition is seeking preliminary relief and a stay to prevent the challenged portions of the final rule from taking effect in the Plaintiff States.
  • The rule would reverse 15 years of progress in expanding healthcare access, threatening coverage for over 100,000 Nevadans.
  • Nevada reached record-setting enrollment with 110,000 ACA plan enrollees this year, with an estimated 1.8 million people at risk of losing their insurance coverage.
  • The rule imposes burdensome and costly paperwork requirements, limits enrollment opportunities, and increases cost-sharing limits.
  • The lawsuit is filed alongside attorneys general from California, Massachusetts, New Jersey, Arizona, Colorado, Connecticut, Delaware, Illinois, Maryland, Maine, Michigan, Minnesota, New Mexico, New York, Oregon, Rhode Island, Vermont, Washington, and Wisconsin, as well as Pennsylvania Governor Josh Shapiro.

Statistics:

  • 1,800,000: Estimated number of people who will lose their health insurance under the Trump administration's final rule.
  • 110,000: Number of Nevadans who enrolled in ACA plans in 2023.
  • 24 million: Number of people who signed up for health insurance coverage in plan year 2025 on the ACA exchanges and received subsidies.
  • 15 years: Length of time the ACA has been in effect, with no provision to increase the number of uninsured people before the Trump administration's final rule.
  • $0: Automatic monthly charge added to all automatically reenrolled consumers who qualify for free premiums.
  • August 25: Effective date of the Trump administration's final rule.

Sources:

  • "Attorney General Ford Joins Multistate Coalition in Challenging Trump Administration's Health Insurance Rule." Office of the Nevada Attorney General.
  • "Press Release: AG Ford Joins Multistate Coalition in Challenging Trump Administration's Health Insurance Rule." Office of the Nevada Attorney General.