
A federal district court judge in Maryland temporarily paused several provisions of the Trump administration’s regulatory changes to the Affordable Care Act that were set to take effect on Monday.
U.S. District Judge Brendan Hurson on Friday ruled in favor of a challenge from the city of Chicago; the Baltimore mayor and city council; and public health advocates. The plaintiffs alleged that numerous people would lose health insurance coverage if the changes were implemented.
In June, the Centers for Medicare & Medicaid Services finalized a rule that shortened the sign-up period and raised eligibility verification requirements for ACA plans. Although regulators said the changes were necessary to combat fraud and abuse in exchanges, health policy experts and patient advocates criticized the rule as overly aggressive, saying it appeared to be aimed at shrinking the size of the exchanges instead of targeting fraud. The advocacy group Democracy Forward sued on behalf of the plaintiffs in July.
In his ruling, Hurson stayed seven provisions, including:
- Creation of a $5 premium penalty for individuals who automatically reenroll in coverage;
- A policy disqualifying people who fail to reconcile tax credits with their income from receiving subsidies;
- Elimination of guaranteed coverage for people who are late paying their premiums;
- Imposition of higher income verification standards if exchanges find inconsistencies in tax data; and
- Stricter eligibility checks ahead of a special enrollment period.
However, he did allow changes to CMS’ methodology for calculating premium adjustments and the elimination of a 60-day window for ACA enrollees to resolve inconsistencies in their income data to go forward.
“Eliminating coverage for an estimated 1.8 million people will drive up costs for the insured and lead to a significant decrease in the quality of care for the newly uninsured, which is unquestionably not in the public interest,” Hurson wrote, according to CNN.
Dr. Christine Petrin, board president of Doctors for America, hailed the ruling
“Today’s ruling is a critical victory for patients and for the promise of the Affordable Care Act,” she said in a statement. “By blocking the Trump-Vance administration’s dangerous rule, the court has protected millions of Americans from losing coverage, facing higher costs and being denied essential benefits.”
A spokesperson for the Department of Health and Human Services told Reuters that the agency doesn't comment on pending litigation. Hurson’s stay pauses the policies until the case is resolved, which is expected to take months.
Meanwhile, 20 Democratic state attorneys general filed a similar challenge in a Massachusetts district court that has yet to be decided.
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