State of California et al. v. Kennedy et al.

Docket No.
1:25-cv-12019
District Court
Massachusetts

Goal

  • Block enforcement of an agency action
  • Declaration that agency action is unlawful

Issues

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 shortens the open enrollment period, eliminates a special enrollment period for low-income consumers, increases premium costs for most Marketplace enrollees, and imposes additional burdensome pre-enrollment requirements. 

Potential Impact:

Roughly two million individuals could lose insurance coverage in 2026 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.

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