Governors Oppose CMS Rule Over Health Insurance Marketplace Standards

In a significant development that could reshape health insurance market regulations in the U.S., five state governors have voiced resistance against the Centers for Medicare & Medicaid Services' (CMS) new 2025 Marketplace Integrity and Affordability Proposed Rule.

This rule, aimed at strengthening standards for health insurance marketplaces and protecting consumers, proposes restrictions that the governors believe will complicate state regulatory efforts, confuse consumers, and limit health coverage options for low-income households. As a result, Illinois, Colorado, Maryland, New Mexico, and Oregon's governors are formally requesting CMS Director Peter Nelson to reconsider and potentially withdraw the rule to prevent adverse effects on local healthcare systems and coverage accessibility.