Great Lakes Wire

Michigan Attorney General Dana Nessel has joined a multistate coalition to file a lawsuit against a new rule from the U.S. Department of Health and Human Services (HHS) and Centers for Medicare & Medicaid Services (CMS). The rule is said to create obstacles for obtaining healthcare coverage under the Affordable Care Act (ACA).

The lawsuit challenges the Trump Administration’s final rule, which includes amendments affecting federal and state health insurance marketplaces. These changes are estimated to result in up to 1.8 million people losing their health insurance, with millions more facing increased premiums and out-of-pocket costs. Additionally, the rule excludes gender-affirming care as an essential health benefit under the ACA.

The attorneys general argue that the HHS and CMS rule is arbitrary, capricious, contrary to law, and violates the Administrative Procedure Act. They seek preliminary relief to prevent parts of the rule from taking effect before August 25.

“Everyone — no matter who they are, where they live, or what they do — deserves access to affordable healthcare,” Nessel stated. “This access gives people the ability to care for their children, manage chronic conditions, and live full and healthy lives.”

Congress passed the ACA in 2010 with aims to increase health insurance coverage among Americans while reducing healthcare costs. In recent years, enrollment on ACA exchanges has doubled; however, this new rule could reverse those trends by creating barriers that may deprive many of coverage.

The final rule introduces changes such as new verification requirements and automatic charges on consumers enrolled in $0 premium plans. It also shortens open enrollment periods and excludes gender-affirming care from federal exchange plans' essential benefits package.

Nessel joins attorneys general from several states along with Pennsylvania Governor Josh Shapiro in this legal action.