A federal judge in Baltimore has issued a ruling, pausing several provisions of an Affordable Care Act (Obamacare) regulation, proposed by the Trump administration.
The provisions, scheduled to be take effect on 25 August 2025, are estimated to potentially result in 1.8 million Americans losing their health insurance.
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The decision, made by US District Judge Brendan Hurson on 22 August, suspends parts of the rule critics argue would complicate enrolment and maintenance of Obamacare coverage while increasing costs for consumers, according to a report by CNN.
Judge Hurson, appointed by former President Joe Biden, blocked measures that would introduce additional income verification requirements, permit insurers to exclude enrollees with unpaid premiums, and impose a $5 premium on certain consumers until they verify eligibility for federal premium subsidies.
Other provisions of the rule were allowed to proceed.
The ruling prevents the administration from implementing the blocked measures while the lawsuit, brought by a group of Democratic-led cities, continues, the report further noted.
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By GlobalDataHurson sided with the cities’ arguments that the Centers for Medicare and Medicaid Services (CMS) lacked authority to enact some of the changes or that they violated existing federal law.
In his 76-page ruling, Hurson stated that without the block, the cities would “suffer significant and irreparable harm.”
He noted, “An increase in the number of uninsured and underinsured residents resulting from the final Rule would create a strain on (city-run health care) services and, ultimately, the cities’ budgets, which must make up the shortfall from decreased compensation and increased demand for emergency services.”
The judge further emphasised the broader implications, writing, “Eliminating coverage for an estimated 1.8 million people will drive up costs for the insured and lead to a significant decrease in the quality of care for the newly uninsured, which is unquestionably not in the public interest.”
CMS, which finalised the rule in June, stated it was designed to curb improper enrolments and ensure the integrity of Obamacare exchanges. The agency declined to comment on the litigation.
A parallel case filed by Democratic attorneys general is under review in Massachusetts, where a federal judge has yet to issue a decision.
