State Leaders Sue to Block Federal Health Insurance Rule

Kathy Jennings, the Attorney General of Delaware, joined Pennsylvania Governor Josh Shapiro and a coalition of 19 other attorneys general to file a lawsuit in the U.S. District Court for the Northern District of California on August 3. The legal challenge seeks to block the 2027 Notice of Benefit and Payment Parameters rule, which is supported by the U.S. Department of Health and Human Services and the Centers for Medicare & Medicaid Services.

The plaintiffs argue that the federal rule weakens the Affordable Care Act by expanding eligibility for plans that provide narrow coverage and do not qualify for premium tax credits. They assert that these changes will lead to higher out-of-pocket costs for patients.

The impact of the rule is significant, with the Health Department estimating that approximately two million people will lose health coverage next year. This figure is projected to rise to five million people losing coverage by 2030.