New York Attorney General Leads Coalition in Lawsuit Challenging Federal Regulation on Affordable Care Act

New York Attorney General Letitia James has joined a coalition of 20 other states in filing a lawsuit against a new federal regulation that threatens to strip health care coverage from millions of Americans, drive up health care costs, and unlawfully remove gender-affirming care from the Affordable Care Act's (ACA) essential health benefits. The lawsuit argues that the new rule from the U.S. Department of Health and Human Services (HHS) and Centers for Medicare and Medicaid Services (CMS) violates federal law, ignores expert warnings, and places unjustified burdens on states and their residents.

The new rule, set to take effect in August, will strip coverage from up to two million people, shorten open enrollment windows, eliminate year-round enrollment for low-income individuals, add extensive paperwork and verification requirements, and make it harder to access health care tax credits. It also limits automatic reenrollment and imposes illegal monthly charges on consumers who qualify for zero-dollar premium plans.

"The new rule is an illegal and dangerous attack on health care access," said Attorney General James. "It strips working families of their health care coverage, imposes unnecessary red tape, and deliberately targets low-income and transgender Americans. In New York, we have expanded coverage, improved affordability, and protected New Yorkers' health."

Key Takeaways:

• The lawsuit challenges a new federal regulation that threatens to strip health care coverage from millions of Americans and drives up health care costs.
• The regulation, set to take effect in August, will strip coverage from up to two million people and impose unfair burdens on states and their residents.
• The coalition argues that the regulation violates federal law, ignores expert warnings, and targets low-income and transgender Americans.
• The regulation will shorten open enrollment windows, eliminate year-round enrollment for low-income individuals, add extensive paperwork and verification requirements, and make it harder to access health care tax credits.
• The lawsuit argues that HHS's new rule violates both the Administrative Procedure Act and the ACA.
• The coalition is seeking to block key parts of the rule from taking effect and ultimately vacate them in full to prevent the significant financial and public health consequences.

Statistics:

• Over 24 million Americans signed up for coverage through the ACA marketplaces this year alone, many of whom receive subsidies to make their insurance even more affordable.
• If the new rule goes into effect, an estimated 12,000 New Yorkers will suddenly lose their health insurance, and premiums will rise across the state.
• The state will have to spend over $10 million on staff time alone to update its systems in line with the new rule.
• Research shows that access to gender-affirming care reduces depression, anxiety, and suicidality in transgender youth.

Sources:

• New York State Attorney General's Office
• U.S. Department of Health and Human Services (HHS)
• Centers for Medicare and Medicaid Services (CMS)
• Patient Protection and Affordable Care Act (ACA)
• June HHS and CMS press release announcing the new rule