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Office of the Vermont Attorney General

09/21/2026 | Press release | Archived content

Attorney General Clark Joins Coalition of States in Pushing Back on Federal Rule That Could Undermine Medicaid, Insurance Regulation, and Health Coverage

Attorney General Charity Clark today joined a coalition of 23 other attorneys general in filing a comment letter opposing a proposed federal rule that the coalition says goes further than federal law allows and interferes with state oversight of insurance and operation of state health insurance exchanges.

The rule was proposed by the Centers for Medicare & Medicaid Services (CMS), a federal agency within the U.S. Department of Health and Human Services responsible for Medicaid. Before a rule like this can take effect, the public, including states, has a chance to weigh in by filing comments. The coalition's comment letter argues that, in this case, CMS is rewriting the rules in a way that goes beyond what Congress authorized.

Specifically, the rule could change how the federal government treats certain taxes, fees, and other payments collected by states. CMS has described its proposal as intended to ensure that states pay their share of the cost of Medicaid, but the proposal would, in fact, extend far beyond that purpose and affect taxes and payments unrelated to Medicaid, improperly interfering with state regulation of health insurance and health care exchanges.

The coalition is urging CMS to withdraw or significantly revise the proposed rule.

Joining Attorney General Clark in sending the comment letter are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Virginia, Washington, and Wisconsin.

Office of the Vermont Attorney General published this content on September 21, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on September 25, 2026 at 20:05 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]