By: Richard L. Smith
According to information released by the New Jersey Attorney General’s Office, Attorney General Jennifer Davenport has joined a coalition of state attorneys general in filing a lawsuit seeking to block a federal rule they say weakens the Affordable Care Act (ACA) and could make health insurance more expensive and less accessible for millions of Americans.
The lawsuit, co-led by New Jersey and California Attorney General Rob Bonta, argues that the Trump Administration’s rule governing 2027 ACA health plans unlawfully expands limited-coverage catastrophic health plans, increases potential out-of-pocket costs for consumers, and creates additional barriers to obtaining health insurance.
State officials contend the rule could lead to millions of Americans losing health coverage over the next several years while shifting higher healthcare costs onto consumers, healthcare providers, and state governments.
The coalition also argues that several provisions mirror rules previously challenged in federal court and were adopted without adequately addressing legal concerns raised by the states.
The lawsuit follows an earlier legal challenge to similar federal ACA regulations.
According to the Attorney General’s Office, federal health officials estimate the new rule could result in approximately two million people losing coverage in 2027, with as many as five million losing coverage by 2030.
The Attorney General’s Office also pointed to New Jersey’s experience this year, noting that nearly 70,000 residents dropped their health insurance through Get Covered New Jersey after enhanced federal premium tax credits expired, leading to higher insurance costs and fewer residents qualifying for financial assistance.
The multistate coalition is asking the court to invalidate the challenged portions of the rule, arguing they violate federal law and undermine the Affordable Care Act.