Democrats’ Attorney Generals File Lawsuit Against HHS Regulations
A coalition of Democratic Attorney Generals has initiated a lawsuit aimed at halting certain regulations from the Department of Health and Human Services (HHS), claiming these could lead to nearly two million individuals losing their health insurance.
The lawsuit, filed in federal court in Massachusetts, involves Attorney Generals from 20 states—including New Jersey, California, and Massachusetts—who collaborated with Democratic Governor Josh Shapiro. They contend that the regulatory changes affecting the health insurance markets established under the Affordable Care Act are illegal and would result in increased healthcare costs for states.
The regulations in question, according to the lawsuit, would create obstacles for people trying to register for health insurance in the marketplace, raising premiums and out-of-pocket expenses. The Trump administration previously suggested that approximately 1.8 million individuals could lose their coverage as a consequence of these changes. The Attorney General is requesting a court ruling to prevent the implementation of some of these rules as early as next month.
“As New Jersey and other states approach the 2026 open enrollment period, the Trump administration appears to be causing disruptions in the healthcare market, increasing costs for states and complicating registration,” the lawsuit states.
Representatives from HHS have not yet responded to requests for comments. The Centers for Medicare and Medicaid Services (CMS) finalized these rules in June, explaining that they aim to curb inappropriate registrations and the misuse of federal funds.
This lawsuit specifically targets rules that reduce registration periods and impose a $5 monthly fee on consumers in certain markets. Additionally, it challenges provisions that restrict access to transgender healthcare, which should be covered under the Affordable Care Act.
The legal action also argues that these regulations present burdensome requirements and costly documentation, forcing consumers to spend significant amounts to prove their eligibility for benefits and grants. The state claims that the rules are arbitrary and were put in place in violation of federal administrative law.
