Trump Administration's Final Rule on Healthcare Coverage Challenged in Multistate Lawsuit

Attorney General Dan Rayfield and a coalition of attorneys general from 20 states, along with Pennsylvania Governor Josh Shapiro, have filed a lawsuit challenging the Trump Administration's final rule that would create significant barriers to obtaining healthcare coverage under the Affordable Care Act (ACA). The rule, announced by the U.S. Department of Health and Human Services (HHS) and Centers for Medicare and Medicaid Services (CMS), would cause up to 1.8 million people to lose their health insurance, while causing millions more to pay increased insurance premiums and out-of-pocket costs.

Key Takeaways:

• The Trump Administration's final rule would make numerous amendments to rules governing federal and state health insurance marketplaces, which is estimated to cause up to 1.8 million people to lose their health insurance.
• The final rule would also exclude coverage of gender-affirming care as an essential health benefit (EHB) under the ACA, which is a violation of the law.
• The lawsuit argues that the HHS and CMS rule is arbitrary and capricious, contrary to law, and violates the Administrative Procedure Act (APA).
• The coalition is seeking preliminary relief and a stay to prevent the challenged portions of the final rule from taking effect on August 25.
• The attorneys general argue that the final rule would cause significant harm to states and their residents, including increasing state expenditures on Medicaid, uncompensated emergency care, and funding other services provided to newly uninsured residents.
• The lawsuit highlights the importance of the ACA in increasing the number of Americans with health insurance and decreasing the cost of healthcare.
• The coalition is not only challenging the final rule but also seeking to protect the rights of millions of Americans who rely on the ACA for their healthcare coverage.

Statistics:

• Up to 1.8 million people may lose their health insurance due to the HHS and CMS rule, according to the Trump Administration's own estimates. (Source: Office of the Oregon Attorney General)
• The ACA has increased the number of Americans with health insurance, with annual enrollment on the ACA marketplace doubling over the past five years, resulting in over 24 million people signing up for health insurance coverage in plan year 2025. (Source: Office of the Oregon Attorney General)
• The final rule would cause significant increases in insurance premiums and out-of-pocket costs for millions of Americans, driving up the costs incurred by states in providing healthcare. (Source: Office of the Oregon Attorney General)

Sources:

• Office of the Oregon Attorney General
• Office of the U.S. Department of Health and Human Services