- Docket No.
- 4:26-cv-07991
- District Court
- California Northern
Goal
- Block enforcement of an agency action
- Declaration that agency action is unlawful
- Vacate agency action
Issues
Litigation Content
Why This Matters:
Why This Matters
The plaintiffs, a coalition of states, allege that a Trump Administration regulation limiting enrollment opportunities, raising consumer health care costs, and imposing new administrative burdens under the Affordable Care Act violates the Administrative Procedure Act. Among other provisions, the regulation allows much higher out-of-pocket health care costs, mandates audits for low-income enrollees and imposes additional burdensome pre-enrollment requirements, expands eligibility for catastrophic plans, and erodes protections for comprehensive provider networks.
Potential Impact:
Potential Impact
Up to 2 million Americans could lose insurance coverage in 2027 alone, face higher insurance premiums, and pay increased out-of-pocket costs due to the federal regulation. This could result in reduced care utilization and greater uncompensated care, and such policies would disproportionately impact low-income families and communities of color. States could also lose tax revenue from insurance premiums, and the rule may lead to decreased access to health care and thus worsen public health in the states.