Attorney General Phil Weiser sues over Trump administration’s latest attempt to undermine Affordable Care Act protections

July 31, 2026 (DENVER) – Attorney General Phil Weiser today joined a coalition of 22 states in filing a lawsuit in the U.S. District Court for the Northern District of California to challenge a federal rule that once again illegally undermines the Affordable Care Act and would make health insurance more expensive and harder to obtain for millions of Americans.

The lawsuit seeks to block provisions of the 2027 Notice of Benefit and Payment Parameters issued by U.S. Department of Health and Human Services and Centers for Medicare & Medicaid Services, which sets standards for health plans offered in 2027. Among other harmful changes, the rule expands eligibility for catastrophic health insurance plans that are ineligible for premium tax credits, offer only limited coverage, and can leave consumers facing significantly higher out-of-pocket costs than standard ACA plans. The rule also allows catastrophic and bronze plans to exceed ACA limits on maximum annual out-of-pocket costs, increasing the financial burden on consumers, and attempts to reinstate several provisions that a federal court recently found to be unlawful.

“The new federal rule unlawfully undermines the Affordable Care Act’s goal of expanding access to affordable healthcare and attempts to reimpose requirements that a federal court has already blocked from going into effect. The sweeping and harmful changes to the regulations that govern the ACA’s marketplaces will reduce enrollment and result in higher costs for consumers, states, and healthcare providers. We’re suing again to protect Coloradans who rely on the ACA to afford health coverage for themselves and their families,” said Attorney General Weiser.

More than 23 million Americans currently receive coverage through ACA marketplaces, including more than 277,000 Coloradans (opens new tab). Today’s lawsuit follows the coalition’s challenge to the Trump administration’s similar 2025 ACA Marketplace rule. Earlier this week, a federal judge in Boston held a hearing in that case, and a final decision is expected at a later date. In related litigation, another federal court last month canceled several provisions of the administration’s 2025 rule — including provisions at issue in this case — after finding that they violated the Administrative Procedure Act.

The administration’s new rule setting standards for 2027 health plans, which is the subject of this lawsuit, brings back many of the same provisions and adds new changes that further undermine the ACA. HHS estimates the new rule will cause two million people to lose coverage in 2027 alone and a total of five million by 2030.

In today’s lawsuit, the coalition argues that the new rule:

  • Reimposes provisions that a federal court has already vacated — including additional income verification requirements and penalties for consumers who do not complete tax-credit paperwork — without addressing the court’s legal concerns.
  • Unlawfully expands eligibility for catastrophic health plans beyond the limits established by Congress in the ACA.
  • Unlawfully allows catastrophic and bronze plans to exceed ACA limits on maximum annual out-of-pocket costs.
  • Was adopted without adequate explanation or a meaningful response to the coalition’s comments, making it arbitrary and capricious under the Administrative Procedure Act.

Joining the lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Virginia, Washington, and Wisconsin, as well as Pennsylvania Governor Josh Shapiro.

Read a copy of the complaint (PDF).

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Media Contact:
Lawrence Pacheco
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lawrence.pacheco@coag.gov