Colorado AG sues Trump administration over new ACA health coverage rules

Colorado on Thursday joined a coalition of 21 states in challenging a new rule from the U.S. Department of Health and Human Services and Centers for Medicare & Medicaid Services.

The lawsuit argues the rule would create significant barriers to purchasing health coverage under the Affordable Care Act, also called Obamacare, by making a variety of changes, including adding new "burdensome and costly" paperwork and verification requirements and shortening the open enrollment period.

It would also cause nearly 2 million people nationally to lose their health insurance, according to a press release from the office of Attorney General Phil Weiser.

The final rule makes numerous changes to provisions impacting federal and state health insurance marketplaces. Premiums, copays and deductibles would also get more costly, according to the release.

The rule also excludes coverage for gender-affirming care as an essential health benefit under the Affordable Care Act. The AG's office said that leaves states like Colorado "responsible for paying for the portion of insurance premiums attributable to any such coverage."

The lawsuit comes a day after Colorado announced that new insurance rates for those who get it on the individual market are expected to soar by 28% statewide and 38% on the Western Slope.

State Democratic leaders blamed the spike on cuts in the Republican budget bill, which cut tax credits for people who buy insurance on the state's marketplace, Connect for Health Colorado. Republican members of Colorado's Congressional delegation defended changes ushered in by the Trump administration as aimed at making government more efficient and cutting down on waste, fraud and abuse.

"At a time when Coloradans are already dealing with high costs of living, if this illegal move by the Trump administration stands, it means many people will now also be facing the prospect of paying more for doctor visits and medicine, or even losing their coverage entirely," said Weiser, a Democrat and candidate for governor.

CPR reached out to HHS for comment but didn't get a reply before deadline.

More than 305,000 people get insurance annually via Connect for Health, which has seen enrollment rise sharply in recent years. Among those who signed up for plans, 8 in 10 got financial help from federal subsidies to lower premiums.

National trends echo Colorado's gains, with 24 million Americans getting insurance through ACA exchanges, double the figure five years ago.

The lawsuit argues the rule is arbitrary and capricious, contrary to law, and violates the Administrative Procedure Act, according to the release. The coalition seeks a stay to stop the challenged portions of the final rule from taking effect next month.

Other states involved in the lawsuit include: Arizona, California, Connecticut, Delaware, Illinois, Maryland, Maine, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Washington and Wisconsin, as well as the governor of Pennsylvania.

This is the 29th lawsuit the attorney general has filed against a variety of actions and orders by the administration.

To read more stories from Colorado Public Radio, visit www.cpr.org.

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