Democratic Attorneys General Challenge New Health Insurance Rule

A coalition of Democratic attorneys general is suing to block parts of a new U.S. Department of Health and Human Services rule they believe will result in nearly 2 million people losing health insurance. They argue the rule changes illegalize certain practices under the Affordable Care Act, increasing costs for states.

In a significant legal move, a group of Democratic attorneys general from 20 states, in conjunction with Pennsylvania Governor Josh Shapiro, initiated a lawsuit against the U.S. Department of Health and Human Services (HHS). Filed in Massachusetts federal court, the lawsuit aims to prevent the implementation of parts of an HHS rule scheduled to take effect imminently.

The controversial final rule, which has faced criticism for potentially creating enrollment barriers, seeks to alter the functioning of state and federal health insurance marketplaces. According to the lawsuit, these changes could lead to a massive loss of health coverage for nearly 1.8 million individuals, simultaneously increasing premiums and out-of-pocket expenses.

The legal action challenges the legitimacy of the rule, highlighting concerns over shortened enrollment periods, additional shopper fees, and potential discrimination against transgender healthcare needs. The attorneys general are pressing for a federal court intervention, emphasizing the unlawful nature of the rule under existing administrative laws.

(With inputs from agencies.)