AG Clark sues over effort to undermine Affordable Care Act protections

Attorney General Charity Clark joined a coalition of 19 other attorneys general in filing a lawsuit challenging a new federal rule that illegally undermines the Affordable Care Act (ACA) and will make health insurance more expensive and harder to obtain.

Among other harmful changes, the rule expands eligibility for health insurance plans that do not qualify for premium tax credits, offers limited coverage, and leaves consumers facing significantly higher out-of-pocket costs than standard ACA plans. The rule also attempts to reinstate several provisions that a federal court recently found unlawful.

The coalition argues that the rule unlawfully undermines the ACA's goal of expanding access to affordable health care by increasing costs, reducing enrollment, and shifting financial burdens onto consumers, states, and health care providers.

"Vermonters are already facing significant barriers to afford and access the health care they need, and the Trump Administration's proposed rule will only make these challenges worse," said Attorney General Clark. "Through this lawsuit, we are challenging this unlawful effort to weaken the Affordable Care Act and fighting to protect affordable health care for Vermonters and communities across the country."

Congress enacted the ACA to expand access to affordable health insurance, and more than 23 million Americans currently receive coverage through its marketplaces. The lawsuit follows the coalition's challenge to the Trump Administration's similar 2025 ACA Marketplace rule. A federal court last month vacated 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.

Joining Attorney General Clark in 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, Rhode Island, Virginia, Washington, and Wisconsin, as well as the governor of Pennsylvania.

This lawsuit is the 58th case Attorney General Clark has brought against the Trump Administration since President Trump took office in January 2025. For more information on actions taken by the Attorney General on behalf of Vermonters, visit our website.