By: Richard L. Smith
New Jersey officials are joining a coalition of states urging the federal government to withdraw a proposed rule that could significantly change how health insurance is offered through the Affordable Care Act marketplace.
According to a statement released by the New Jersey Attorney General’s Office, Attorney General Jennifer Davenport joined the attorneys general of California, Massachusetts, and 16 other states in calling on the Trump Administration to abandon the proposal issued by the U.S. Department of Health and Human Services and the Centers for Medicare & Medicaid Services.
The rule, released on February 11, 2026, is intended to prepare states for the ACA’s 2027 open enrollment period.
However, state officials warn the proposed changes could increase health care costs, reduce coverage, and create new barriers for consumers seeking insurance.
New Jersey officials say the proposal could push as many as two million Americans off their health insurance plans nationwide.
The rule would also expand the use of catastrophic health insurance plans, which offer limited coverage and require consumers to pay large out-of-pocket costs before benefits begin.
Under the proposal, maximum out-of-pocket costs for catastrophic plans could rise to $15,600 for individuals and $31,200 for families by the 2027 plan year—figures officials say would be unaffordable for many households.
State leaders also raised concerns that the rule would eliminate standardized health plans, remove certain benefits such as adult dental coverage, and eliminate a special enrollment period that currently helps low-income residents obtain coverage after losing Medicaid eligibility.
Officials further argue that the proposal could create confusion for consumers, increase administrative burdens for states, and open the door to fraud by allowing new private broker models for marketplace enrollment.
New Jersey’s state-run health insurance marketplace, GetCoveredNJ, currently serves nearly half a million residents. 
State officials warn the changes could destabilize the marketplace and drive premiums even higher if implemented.
The coalition of states has formally asked federal officials to withdraw the proposed rule, arguing that the changes would undermine the Affordable Care Act’s goal of expanding access to affordable health coverage while increasing costs for consumers.