Growing Number of Health Groups Join Court Fight Against Obamacare Changes

A coalition of health organizations is joining a long-running lawsuit challenging Trump administration rules that they claim would raise health care costs for millions of persons and drive 2 million more out of the Affordable Care Act marketplace.Robert F. Kennedy Jr.’s Department of Health and Human Services created new rules for the so-called Obamacare program in June 2025 saying they were needed to combat widespread fraud. The rules cited analysis from Paragon Health Institute — a small conservative think tank — accusing insurance brokers of profiting from thousands of people who were allegedly enrolled for coverage without their knowledge.Among the changes, the new rules would disqualify some consumers from receiving premium tax credits if they fail to file a tax return; require additional income verification; and expand pre-enrollment verification requirements for special enrollment periods.The changes would expand access to catastrophic and non-network plans as lower-cost alternatives but would leave policy holders to shoulder most of the rest of health care costs. The final rule also revises the maximum out-of-pocket costs in the marketplace’s lowest-level bronze plans.The proposal has been involved in a court battle ever since. A lawsuit, City of Columbus v. Kennedy, challenged the changes saying the Department of Health’s own estimates showed 1.8 million people would lose health coverage in the first year alone.In June, the United States District Court for the District of Maryland blocked many of the changes but the Trump administration tried to implement new rules for 2027 that the judge found were “materially identical” to those that were previously blocked.The plaintiffs — three cities, one county, a coalition of doctors, and an interest group representing small business owners — alleged they will shoulder increased costs or see their members lose health insurance coverage if the changes are implemented. They claimed several provisions are designed to steer enrollees to far less generous coverage.The Department of Health and Human Services countered that the challenged provisions are designed to help enrollees avoid inadvertently incurring unexpected costs for tax credits and benefits for which they are ineligible.In July, the same district court that blocked the proposed rules the first time temporarily halted eight provisions in the updated rules, including an expanded hardship exemption, the elimination of standardized plans, and updated bronze plan cost-sharing methodology. District Judge Brendan Hurson said the plaintiffs are likely to succeed on the merits of their challenges to provisions of the rule and showed they “will face irreparable harm” from the policies.It was unclear if the government would challenge the new ruling but it has appealed the first case to the Fourth Circuit Court of Appeals. Government lawyers have asked for an expedited appeal and for a decision before the end of the year.The National Health Law Program, an umbrella group representing the American Cancer Society, the American Lung Association, the Muscular Dystrophy Association, the National MS Society, and other groups, this week filed a friend of the court brief in support of the case against the administration.The groups say the new rule will increase consumer premiums and out-of-pocket costs, and force people to seek plans that have higher deductibles, copays, or coinsurance. The brief also claims that a rule change that would end the yearly enrollment period on December 15 instead of January 15 will make it harder for consumers to sign up on time — especially those in rural areas or with disabling conditions who might need more time to enroll.The brief claims the rule will also disproportionately harm people with fluctuating incomes and those with relatively low health literacy, who will have less time to resolve verification issues for advance premium tax credits. The court filing says the changes will be especially hard-hitting for the self-employed, such as artists, hairdressers, ride-share drivers, and consultants, because their incomes are often sporadic with months of plenty and months with little work or income. “Finding acceptable proof of income can be difficult, and those who are unable to produce this evidence may be unable to enroll at all,” the brief states.With final rulings on the case still undecided, Health and Human Services has told health care exchanges to continue to use the same criteria for the 2027 plan year that was used in the 2026 plan year. Open enrollment at the federally facilitated marketplace will begin on November 1 and end on January 15, 2027.

Growing Number of Health Groups Join Court Fight Against Obamacare Changes

Growing Number of Health Groups Join Court Fight Against Obamacare Changes

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