New Jersey Attorney General Jennifer Davenport is leading a multistate coalition urging the federal government to withdraw a proposed rule they say would raise health insurance costs and reduce coverage.
Trenton, NJ — New Jersey Attorney General Jennifer Davenport and attorneys general from 18 states are pushing back against a proposed federal rule they say could increase health insurance costs and cause up to two million Americans to lose coverage.
The coalition submitted a comment letter to the U.S. Department of Health and Human Services opposing the proposed payment rule affecting Affordable Care Act marketplace plans beginning in the 2027 coverage year.
Key Points
• NJ Attorney General Jennifer Davenport joined 18 states opposing a federal ACA marketplace rule
• Officials say the proposal could raise out-of-pocket costs to $31,200 for some families
• The coalition warns up to two million Americans could lose health insurance coverage
State officials say the proposed rule would significantly increase maximum out-of-pocket costs for certain catastrophic health insurance plans and introduce several structural changes to the ACA marketplace.
Under the proposal, the maximum out-of-pocket limit for catastrophic plans could rise to $15,600 for individuals and $31,200 for families.
States Warn of Coverage Losses
According to the coalition, the changes could lead to up to two million additional Americans losing health insurance coverage.
Officials also warned the rule could destabilize health insurance markets by encouraging consumers to shift into lower-coverage catastrophic plans.
The attorneys general argued that these plans offer fewer consumer protections and do not fully comply with ACA standards requiring coverage of essential health benefits.
Concerns Over Consumer Protections
New Jersey officials say the rule could also make enrollment more complicated and create opportunities for fraud in the health insurance marketplace.
The proposal would remove certain standardized plan options and allow new private-sector marketplace broker models that states say could steer consumers toward lower-quality plans.
Officials also criticized provisions that would eliminate a special enrollment period for low-income individuals who lose Medicaid coverage.
Multistate Coalition Challenges Rule
The proposal was issued by the U.S. Department of Health and Human Services and the Centers for Medicare & Medicaid Services in February as part of preparations for the 2027 ACA open enrollment cycle.
In their comment letter, the coalition argued the rule contains flawed analysis, adds costly administrative burdens for states, and reintroduces provisions that courts previously blocked in litigation involving New Jersey and other states.
State officials say they are urging federal regulators to withdraw the proposal before it moves forward.
Tags: Trenton NJ, Health Policy, Affordable Care Act, New Jersey Attorney General, US Department of Health and Human Services
