Coalition of 21 states sues to block Trump administration rule undermining the Affordable Care Act

A coalition of 21 state attorneys general and the Pennsylvania governor filed a lawsuit in the U.S. District Court for the Northern District of California challenging a federal rule from the Trump administration's HHS and CMS that sets standards for 2027 health plans. The rule reimposes provisions a federal court previously vacated, expands eligibility for catastrophic health plans beyond congressional limits, and allows plans to exceed ACA out-of-pocket maximums. HHS estimates the rule will cause two million people to lose coverage in 2027 and five million by 2030. The coalition argues the rule was adopted without adequate explanation, making it arbitrary and capricious under the Administrative Procedure Act.

“Instead of making healthcare more affordable and accessible when families need it most, the federal government is stripping coverage from thousands of Michiganders and destabilizing our entire healthcare system.” Quote verified against source