NJ AG and Others Sue to Protect Health Insurance Coverage under the ACA
Published Date: 10/1/2026
On July 31, 2026, New Jersey Attorney General Jennifer Davenport and California Attorney General Rob Bonta co-led a coalition of 21 attorneys general and the Governor of Pennsylvania in filing a lawsuit challenging provisions of a new federal rule establishing requirements for 2027 Affordable Care Act (ACA) health plans. Congress enacted the ACA in 2010 to increase the number of Americans with health insurance and decrease the cost of healthcare. In the lawsuit, the coalition argues that the new rule undermines the ACA in the following ways:
- Revives provisions previously vacated by a federal court, including additional income-verification requirements and penalties for failure to complete tax-credit paperwork;
- Expands eligibility for catastrophic health plans that offer limited coverage and have higher out-of-pocket costs than standard ACA plans;
- Allows catastrophic and bronze plans to exceed ACA limits on annual out-of-pocket costs; and
- Increases costs and reduces enrollment, shifting additional financial burdens to consumers, health care providers, and states.
This lawsuit is particularly significant for New Jersey, where nearly 70,000 residents dropped their health insurance coverage this year, most due to nonpayment, following the expiration of enhanced federal premium tax credits, a key aspect of the ACA.
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Caroline J. Patterson
Member
Healthcare Law
973-364-5233 · 973-618-5547 Fax
cpatterson@bracheichler.com
Related Practices: Healthcare Law
Related Attorney: Caroline J. Patterson, Edward J. Yun, Vanessa Coleman
Related Industry: Healthcare
