Health agents victorious against CMS moratorium

Two health insurance agent associations won a victory in court against the Centers for Medicare & Medicaid Services.

U.S. District Court Judge Stephanie Gallagher ordered an end to a CMS temporary moratorium on new agent and broker registrations for the federally facilitated Affordable Care Act exchanges for the 2027 plan year.

CMS an interim final rule in September, placing a pause on new ACA agent registrations. The agency said a temporary, prospective pause on new agent registrations would allow CMS to enhance identity-verification, authentication, monitoring and other program-integrity controls before additional agent and broker entrants begin assisting consumers.

The National Association of Benefits and Insurance Professionals and Health Agents for America filed separate actions against the U.S. Department of Health and Human Services and CMS in the U.S. District Court in the District of Maryland.

NABIP’s lawsuit argues that HHS adopted its rule authorizing moratoriums in violation of the Administrative Procedure Act and the Affordable Care Act. The lawsuit further argues that CMS’s decision to impose the moratorium violates the act because it is arbitrary, capricious and unsupported by sufficient evidence.

The moratorium prevents agents and brokers who did not obtain an exchange registration for Plan Year 2026 from registering for Plan Year 2027, effectively barring them from assisting consumers through the federal marketplace during the open enrollment period.

HAFA sought a temporary restraining order in response to CMS’ moratorium on new agents and brokers.

Gallagher’s ruling also requires CMS to make training and registration available for new ACA agents and requests that CMS provide an update when training is live.

CMS’ attorney said the agency would make training available to new agents and brokers within 24 hours of the order; the government also stated that training and registration would be the only requirements for new agents and brokers to assist with ACA enrollments.

‘A significant victory’ for agents

“Today’s ruling is a significant victory for licensed agents and brokers and the consumers who rely on their expertise,” said NABIP President Mychal Walker. “With Open Enrollment already underway, every day matters. “Lifting the moratorium immediately and beginning training tomorrow will help affected professionals get to work assisting individuals and families in finding coverage that fits their needs and budgets.”

Ronnell Nolan, HAFA president and CEO, said in a social media post that her organization’s members submitted declarations describing what the rule was costing them: lost revenue, staff they had to let go, and clients they could not serve. The court cited that harm directly in granting the stay.

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Susan Rupe is editor in chief, magazine, for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at susan.rupe@innfeedback.com.