Legal Challenge to CMS Rule Affecting Affordable Care Act Coverage
A coalition of municipalities and organizations, including the City of Columbus, the Mayor and City Council of Baltimore, the City of Chicago, Pima County, Doctors for America, and Main Street Alliance, has filed a legal challenge in the United States District Court for Maryland against a recent rule introduced by the Centers for Medicare & Medicaid Services (CMS). This rule, part of the U.S. Department of Health and Human Services' (HHS) recent regulatory efforts, is alleged to have bypassed the legally required approval process. The plaintiffs argue that the rule undermines the fundamental provisions of the Affordable Care Act (ACA) by imposing new barriers to obtaining affordable health insurance coverage.
The rule in question, titled “Patient Protection and Affordable Care Act, HHS Notice of Benefit and Payment Parameters for 2027; and Basic Health Program,” was published on May 20, 2026. Critics warn that it could lead to a loss of coverage for at least two million Americans who rely on ACA's health insurance exchanges. There is an expectation of increased premiums and out-of-pocket expenses for the remaining participants. Claims have surfaced that several components of the rule conflict with existing federal laws and were enacted without appropriate procedural adherence, lacking reasonable explanations or responses to public comments. Without judicial intervention, the rule is set to take effect on July 20, 2026.
Historically, efforts to adjust ACA provisions have faced legal pushbacks. Previous attempts under the Trump administration met with judicial resistance, as courts vacated and remanded parts of rules perceived as inconsistent with the legislative intent of the ACA. Stakeholders involved in this current lawsuit express concern over the potential adverse impact on public health and economic stability if the new rule proceeds.
Dr. Meenakshi Bewtra, President of Doctors for America, asserted that the rule imposes unnecessary obstacles, increases costs, and distances healthcare access from patients who rely on ACA's protections. Richard Trent, Executive Director of the Main Street Alliance, emphasized that the ACA is vital for maintaining a healthy workforce, highlighting its importance for both employees and small business sustainability.
The case, titled City of Columbus v. Kennedy, is managed by a legal team from Democracy Forward, comprising Joel McElvain, Cortney Robinson Henderson, and Christine Coogle. Democracy Forward Foundation continues to advocate for policies that align with democratic and social progress.