Attorney General Ford Sues Trump Administration Over Effort to Again Undermine Affordable Care Act Protections

Coalition Sues Over Federal Rule That Reinstates Provisions Blocked by a Federal Court and Adds New Harmful Changes

Carson City, NV- Today, Attorney General Aaron D. Ford announced he has filed a lawsuit in the U.S. District Court for the Northern District of California challenging a federal rule that once again unlawfully undermines the Affordable Care Act (ACA) and threatens to make health insurance more expensive and less accessible for millions of Americans. The lawsuit, filed by Attorney General Ford alongside a coalition of 21 attorneys general and the governor of Pennsylvania, seeks to block provisions of the U.S. Department of Health and Human Services' (HHS) and Centers for Medicare & Medicaid Services' (CMS) 2027 Notice of Benefit and Payment Parameters, a federal rule that sets standards for health plans offered in 2027 and was opposed by the coalition in a March 2026 comment letter.

Among other harmful changes, the rule expands eligibility for catastrophic health insurance plans that are ineligible for premium tax credits; offer only limited coverage; and can leave consumers facing significantly higher out-of-pocket costs than standard ACA plans. The rule also allows catastrophic and bronze plans to exceed ACA limits on maximum annual out-of-pocket costs and attempts to reinstate several provisions that a federal court recently found to be unlawful. The coalition argues these and other provisions unlawfully undermine the ACA's goal of expanding access to affordable healthcare by increasing costs, reducing enrollment and shifting financial burdens onto consumers, states and healthcare providers.

"The Trump administration is once again attempting to drive up health care costs and we are once again, taking Trump to court," said Attorney General Ford. "This rule pushes people onto more expensive plans that provide less coverage, all while reviving provisions a federal court has already found unlawful. Nevadans deserve affordable, comprehensive health care, not policies that force them to pay more and get less."

Congress enacted the ACA to expand access to affordable health insurance, and more than 23 million Americans currently receive coverage through its marketplaces. Today's lawsuit follows the coalition's challenge to the Trump Administration's similar 2025 ACA Marketplace rule. Earlier this week, the U.S. District Court for the District of Massachusetts held a hearing on the parties' cross-motions for summary judgment in that case with a final decision expected at a later date. In related litigation, a federal court last month vacated several provisions of the administration's 2025 rule - including provisions at issue in this case - after finding that they violated the Administrative Procedure Act. The administration's new rule setting standards for 2027 health plans, which is the subject of this lawsuit, brings back many of the same provisions and adds new changes that further undermine the ACA. HHS estimates the new rule will cause two million people to lose coverage in 2027 alone and a total of five million by 2030.

In today's lawsuit, the coalition argues that the new rule:

• Reimposes provisions that a federal court has already vacated - including additional income verification requirements and penalties for consumers who do not complete tax-credit paperwork - without addressing the court's legal concerns.
• Unlawfully expands eligibility for catastrophic health plans beyond the limits established by Congress in the ACA.
• Unlawfully allows catastrophic and bronze plans to exceed ACA limits on maximum annual out-of-pocket costs.
• Will increase costs, reduce enrollment and shift financial burdens onto consumers, healthcare providers, and states.
• Was adopted without adequate explanation or a meaningful response to the coalition's comments, making it arbitrary and capricious under the Administrative Procedure Act.

Attorney General Ford joined today's lawsuit, which was co-led by California Attorney General Rob Bonta and New Jersey Attorney General Jennifer Davenport, alongside the attorneys general of Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Mexico, New York, Oregon, Rhode Island, Vermont, Virginia, Washington and Wisconsin, as well as Pennsylvania Governor Josh Shapiro.

Attachment: COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

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