Washington challenges Trump administration rule that will make it more difficult and expensive to obtain health insurance through the ACA

Attorney General Nick Brown today joined a coalition of 21 attorneys general and the Governor of Pennsylvania in filing a lawsuit in the U.S. District Court for the Northern District of California to challenge a federal rule that illegally undermines the Affordable Care Act (ACA) and will make health insurance more expensive and harder to obtain for millions of Americans.

The lawsuit seeks to block provisions of the U.S. Department of Health and Human Services' (HHS) and Centers for Medicare & Medicaid Services' 2027 Notice of Benefit and Payment Parameters, a federal rule that sets standards for health plans offered in 2027. Among other harmful changes, the rule expands eligibility for catastrophic health insurance plans that are ineligible for health insurance 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, increasing the amount of money that consumers would need to pay for care. It also 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.

"Washingtonians deserve high-quality, affordable health insurance," said Brown. "The Trump administration's own analysis shows this rule will cause millions to lose their health insurance. Many more will be pushed into low-quality plans that come with massive out-of-pocket costs. We are going to court to protect healthcare for thousands of Washingtonians."

Congress enacted the ACA to expand access to affordable health insurance. The following year, our state established the Washington Health Benefit Exchange, building a stable, competitive individual market for health and dental insurance and enabling people to access subsidies to make coverage more affordable, leading to a drop in the state's uninsured rate from 14.2 percent in 2011 to 4.8 percent in 2023. Currently, nearly 250,000 Washingtonians get their health insurance through the Washington Health Benefit Exchange. Under this final rule, their health insurance will become more expensive.

The coalition previously challenged 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, last month a federal court 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.

Joining Brown in today's lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Virginia, and Wisconsin, as well as Pennsylvania Governor Josh Shapiro.

Read the complaint.