Other LanguagesBy the Trump administration's own estimates, the rule will cause up to 1.8 million people to lose their health insurance
SEATTLE – Attorney General Nick Brown today joined a multistate coalition in filing a lawsuit challenging an unlawful final rule promulgated by the U.S. Department of Health and Human Services (HHS) and Centers for Medicare & Medicaid Services (CMS) that would create significant barriers to obtaining health care coverage under the Affordable Care Act (ACA).
Congress passed the Affordable Care Act in 2010 to increase the number of Americans with health insurance and decrease the cost of health care. The following year, Washington established the Washington Health Benefit Exchange, building a stable, competitive individual market for health and dental insurance and enabling people to access subsidies to make coverage more affordable, leading to a drop in the state’s uninsured rate from 14.2 percent in 2011 to 4.8 percent in 2023.
But now the Trump administration is turning back the clock with this final rule, rushed through with an unlawfully short 23-day notice and comment period, that will make it more difficult for people to enroll and keep their health insurance. The administration concedes that up to 1.8 million people across the country will likely lose their health insurance.
In Washington, the final rule would lead to:
- Tens of thousands fewer people enrolling in health insurance through the Washington Health Benefit Exchange,
- The loss of as much as $10 million in annual revenue to the Washington Health Benefit Exchange due to decreased enrollment, and
- $100 million in uninsured and largely uncompensated hospital care costs, that would then be borne by state taxpayers, providers, carriers, and employers.
The final rule also excludes coverage of gender-affirming care as an Essential Health Benefit under the ACA. Insurers in Washington will continue to cover gender-affirming care as required by state law. But the rule change means the state will have to defray the expense of these medically necessary insurance benefits, costing state taxpayers about one million dollars annually.
“The Trump administration seems determined to undo the progress we’ve made in the past 15 years to help people get medical treatment when they need it,” Brown said. “People in Washington deserve the health care coverage they’re entitled to under the law, and I will continue fighting to protect that access.”
“Everyone deserves affordable health care,” Washington Governor Bob Ferguson said. “Washington will stand with our partners across the country against the Trump administration’s efforts to strip away people’s health care. Reversing this unlawful rule will help thousands of Washingtonians hold on to their health coverage.”
“The federal rule from this administration puts up barriers to accessing care that people have counted on for years, makes health insurance more expensive for consumers, and shifts financial burdens to states,” said Insurance Commissioner Patty Kuderer. “Washington state has a stable insurance market today and strong provisions in place to protect against fraud and abuse in our marketplace. The federal government should help us make health insurance more accessible and less costly for people, not more complicated and expensive to obtain.”
“In the past decade, Washington state's uninsured rate has dropped significantly, in large part due to the availability of marketplace health insurance plans offered through Washington Health Benefit Exchange. This rule will sharply curtail that progress and reverse years of significant gains,” said Ingrid Ulrey, CEO of the Washington Health Benefit Exchange. “We estimate that this rule, combined with other federal changes, will result in enrollment loss of one-third or more of our current customer base of 280,000 Washington residents.”
Brown and attorneys general from 19 other states, along with the governor of Pennsylvania, are suing because the rule creates harmful changes to insurance marketplaces and health coverage subsidies. The rule shortens the period people can sign up for health insurance, raises premiums for people who do purchase individual insurance, and drives up costs for the plaintiff states, including covering the expense of medical care for people who lose insurance due to the final rule.
The attorneys general argue that the rule is arbitrary and capricious and violates the Administrative Procedure Act. The coalition is asking the court to prevent the challenged portions of the final rule from taking effect in the plaintiff states before the August 25 effective date.
Joining Brown in this lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maryland, Maine, Massachusetts, Michigan, Minnesota, New Jersey, Nevada, New Mexico, New York, Oregon, Rhode Island, Vermont, and Wisconsin, as well as Pennsylvania Governor Josh Shapiro, on behalf of the Commonwealth of Pennsylvania.
A copy of the complaint is available here.
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