20 States File Suit Against Trump Administration for ACA Eligibility Rule, Kicking Off Dreamers

Last week, a coalition of Democratic-led states filed suit against the Trump administration’s Centers for Medicare and Medicaid Services (CMS), in response to a final rule issued by the agency. The rule adds acute regulations to the Affordable Care Act (ACA) marketplace, which the plaintiffs allege will cause the number of uninsured people to increase, thereby increasing state spending on health programs.

More than 20 states, including Arizona, joined the suit filed in Massachusetts district court. The CMS final rule shortens the annual open enrollment period by a full month, ends special enrollment for low-income enrollees and tightens controls on income verification for qualification during the enrollment process. The plaintiffs allege that the regulations will reverse growth in ACA marketplace enrollment. According to Healthcare Dive, the rule will cause states to incur “unrecoverable compliance costs” related to updating systems, retraining staff and outreach to beneficiaries.

Arizona Attorney General Kris Mayes joined the lawsuit filed July 17, her 23rd suit against the Trump administration since President Donald Trump took office, AZCentral notes. The rule also removes so-called Dreamers, or people who were brought to the U.S. by undocumented families as children and received protection from deportation under the Obama administration, from ACA eligibility. In a statement, Mayes explained that the suit would protect Arizonans from losing health insurance:

Arizonans didn’t vote for people who already qualify for health care to lose their health insurance. This is yet another example of the federal administration trying to kick people off of their health insurance plans.

The rule is scheduled to go into effect beginning August 25, but Modern Healthcare reports that the plaintiffs requested that the court postpone implementation of parts of the rule. The suit relies primarily on procedural arguments, arguing that CMS failed to leave the regulation open for public comment and did not have a statutory basis for some of the policies like the limited sign-up period.

The June 20 final rule can be reviewed in full at the CMS website.