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Democratic attorneys general sue to block HHS changes to ACA health insurance marketplaces

UNITED STATES, JUL 17 – The coalition argues the new rule will reduce enrollment periods, impose fees on zero-premium plans, exclude gender-affirming care, and cause up to 1.8 million people to lose coverage.

  • On Thursday, the coalition of 20 state attorneys general and Pennsylvania Governor Josh Shapiro sued HHS and CMS in Massachusetts, challenging a rule set to take effect on Aug. 25.
  • Under the new rule, the administration shortens enrollment and adds fees, it also excludes gender-affirming care from essential health benefits.
  • Conflicting projections underscore high stakes: coverage loss versus savings, with the Trump administration estimating up to 1.8 million people could lose coverage, while CMS projects $12 billion in savings and a 5% premium reduction.
  • Washington state projects substantial revenue declines for its health exchange, and Washington forecasts up to $10 million in lost exchange revenue.
  • Seeking to halt the changes, the coalition requested a stay before Aug. 25 to avert coverage losses, with less than four months until plan year 2026 open enrollment.
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The spokesman-Review broke the news in Spokane, United States on Thursday, July 17, 2025.
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