Arizona joins 22-state lawsuit to block federal insurance rule that would gut ACA protections

Arizona Attorney General Kris Mayes joined a coalition of 22 states Friday in suing the Trump administration over a new federal rule that officials say would strip health coverage from millions of Americans.

The lawsuit, filed in U.S. District Court in Northern California, challenges the Department of Health and Human Services’ 2027 payment rule, which sets standards for health plans sold on Affordable Care Act marketplaces.

The lawsuit projects the rule will eliminate health coverage from five million Americans by 2030.

The states argue the rule illegally opens up bare-bones catastrophic plans to more people, lets insurers charge higher out-of-pocket costs than Congress allowed and brings back enrollment barriers that a federal court already struck down as unlawful earlier this year.

“Stripping away out-of-pocket protections and pushing families toward catastrophic plans just shifts costs from insurers to patients and hospitals that can’t afford it,” Mayes said in a statement.

Arizona is among four plaintiff states whose residents enroll through the federal exchange, meaning the rule’s verification requirements would directly affect Arizonans seeking coverage.

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