logo
Group of cities sues Trump administration over new changes to Obamacare enrollment and eligibility

Group of cities sues Trump administration over new changes to Obamacare enrollment and eligibility

CNN01-07-2025
A group of Democratic-led cities sued the Trump administration Tuesday over new changes to the Affordable Care Act that they say will undermine the sweeping health care law and result in nearly 2 million Americans losing health insurance.
The rule, finalized on June 25, shortens the open enrollment period for Americans buying insurance on the marketplace and ends a monthly special enrollment period for people with incomes below 150% of the federal poverty line. It also introduces more preenrollment requirements, such as income verification checks.
The Centers for Medicare and Medicaid Services estimated last month between 725,000 and 1.8 million people could lose coverage due to the rule, but said the changes introduce new 'safeguards' against improper enrollment and overspending.
The lawsuit, filed in federal court in Maryland, was brought by the cities of Chicago, Baltimore and Columbus, Ohio, as well as an association of doctors and a non-profit network of small businesses that rely on the Affordable Care Act marketplace.
They allege that several parts of the new rule violate the ACA and other federal laws, and say the administration ran afoul of federal rulemaking procedures when it created the new policies, including by failing to respond to public comments submitted as the rule was being finalized.
'Rather than reducing the cost of insurance for consumers, or increasing their enrollment rates and benefits, Defendants' new policies will cause at least 1.8 million Americans to lose coverage on the ACA's health insurance Exchanges in 2026 alone and will ultimately result in higher premiums in the long term and higher out-of-pocket costs for the remaining enrollees,' attorneys for the plaintiffs wrote in the lawsuit.
The plaintiffs, represented by attorneys with Democracy Forward, are asking the court to wipe away the parts of the new rule they're challenging.
Spokespeople for CMS and its parent agency, the Department of Health and Human Services, did not immediately respond to a request for comment on the lawsuit.
Advocates for the Trump administration's rule changes say the ACA marketplace is rife with fraud because of expanded subsidies, or tax credits that keep Americans' monthly premiums low. Millions of people are enrolling in those low-cost plans even if their income makes them ineligible for heavily subsidized plans, according to conservative think tank Paragon Health Institute.
Congress expanded those subsidies in 2021 during the Covid-19 pandemic, but the temporary tax credits are set to expire at the end of 2025. The beefed-up subsidies helped drive a record 24 million people to sign up for coverage for 2025.
The new rule is set to take effect in late August. The House version of President Donald Trump's agenda bill would codify the rule into law, though the Senate legislation has different provisions, which would also tighten eligibility for subsidies and increase verification requirements.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

U.S. And EU Reach Trade Deal—Setting Tariffs at 15%
U.S. And EU Reach Trade Deal—Setting Tariffs at 15%

Forbes

time24 minutes ago

  • Forbes

U.S. And EU Reach Trade Deal—Setting Tariffs at 15%

The U.S. has agreed to a trade deal with the European Union, President Donald Trump announced Sunday afternoon, agreeing to a 15% tariff rate on most exports, including European cars, from EU countries—just days before the Aug. 1 deadline set for Trump's 'reciprocal' tariffs. US President Donald Trump meets with European Commission President Ursula von der Leyen in Scotland ... More on Sunday. AFP via Getty Images This is a breaking story and will be updated.

Vought won't rule out more rescissions funding cuts before September
Vought won't rule out more rescissions funding cuts before September

CBS News

time24 minutes ago

  • CBS News

Vought won't rule out more rescissions funding cuts before September

Office of Management and Budget Director Russell Vought said his office is considering more options to claw back funding approved by Congress and isn't ruling out sending more bills to lawmakers with further cuts before September. Vought confirmed on CBS News' "Face the Nation with Margaret Brennan" Sunday that "we are looking to do [a] rescissions package" to take back some funding from the Education Department. A rescissions bill is the president's request to rescind funding already appropriated by Congress. Last week, President Trump signed a bill clawing back foreign aid, NPR and PBS funding, becoming the first president in decades to receive approval for such a measure. "We're thrilled that we had the first rescissions package in decades, and we've got the process moving again," Vought said of the $10 billion clawback. Asked to confirm there'd be no rescissions package before September, as Congress attempts to fund the government and head off a shutdown, Vought responded, "Not here to say that. We're looking at all of our options, we will look at it and assess where the Hill is, what are the particular funding opportunities that we have?" Asked about National Institutes of Health funding for research into heart disease and cancer that has yet to be released, Vought replied, "We're going through the same process with the NIH that we did with the education." He alleged NIH had wasted funds, claiming "$2 million for injecting dogs with cocaine that the NIH spent money on, $75,000 for Harvard to study blowing lizards off of trees with leaf blowers." He vowed to go "line by line to make sure the NIH is funded properly" and said funding would be released "when we are done with that review." Vought's use of rescissions measures to amend government spending is seen by Democrats and some Republicans as a backdoor method of infringing on Congress' constitutional power of the purse. "Rescissions is just a Washington name for double cross," Democratic Sen. Chris Van Hollen of Maryland, also on "Face the Nation," said after Vought's interview on the program. "They support one thing one day — the president even signs off — and then they come back and say they change their mind." But the OMB director argued, "We have the ability and the executive tools to fund less than what Congress appropriated" under the Impoundment Control Act, which enables the president to delay spending funds appropriated by Congress, and he didn't rule out a legal battle over the executive branch's authority to revise lawmakers' spending downward, if it "could find waste" by an agency. Vought has also caused GOP Senate Majority Leader John Thune some headaches with a comment he made Thursday suggesting the appropriations process must be "less bipartisan." But this put Thune in a bind as he oversees negotiations to avoid a government shutdown in October, since Republicans hold a slim majority of 53 - 47 in the Senate, and most legislation must reach a 60-vote threshold. "It's going to take 60 to fund the government," Thune said in response to Vought's remark, and he added, "we plan to move [appropriations] bills that will have cooperation from the Democrats." Van Hollen said it was ironic that Vought is "calling for these deep cuts to education, NIH, when he has asked for an increase for his OMB budget." And referring to reduction-in-force — or RIF — staff cuts the administration wants across the government, Van Hollen added, "He asked for a 13% increase for his OMB budget. He's asked for more people to join the OMB staff while he's talking about RIF-ing people at other departments." The Maryland senator said that Democratic senators, as they negotiate funding government operations, are "asking for four Republican senators just to publicly declare that when they say they're gonna fund the Veterans Affairs Department, that they actually mean it."

Sen. Ron Wyden talks Epstein files, Paramount-Skydance merger, more
Sen. Ron Wyden talks Epstein files, Paramount-Skydance merger, more

Yahoo

time30 minutes ago

  • Yahoo

Sen. Ron Wyden talks Epstein files, Paramount-Skydance merger, more

PORTLAND, Ore. (KOIN) — Senator Ron Wyden — soon to be the longest-serving senator in Oregon history — is back in the state for the summer recess and a series of town halls this weekend. Wyden, the 76-year-old Democrat, has been speaking a lot over the last couple of weeks, from the Epstein files and the continued fallout from the Epstein sex trafficking operation, to concerns about the now-approved merger between Paramount and Skydance, to the early impact of President Trump's 'big beautiful bill.' Sen. Wyden returned to Eye on Northwest Politics to discuss all the goings on in Washington, D.C. and how it affects people in Oregon. Watch the full interview in the videos above. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store