A newly finalized federal rule is expected to raise healthcare costs and cut off insurance access for thousands of Marylanders, prompting state leaders to take legal action. According to a July 17 press release from the Maryland Office of the Attorney General, Maryland has joined a multistate lawsuit opposing the Trump administration’s new policy, which modifies Affordable Care Act (ACA) regulations and is projected by the federal government itself to cause up to 1.8 million Americans to lose health insurance.
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The rule, set to take effect August 25 unless blocked by the courts, introduces stricter verification requirements, shortens enrollment periods, and imposes new fees on individuals automatically re-enrolled in no-premium plans. Maryland officials estimate that 34,000 residents could lose their coverage as a result. The state also faces an estimated $4 million revenue loss and a rise in administrative costs as more residents become uninsured and require state-funded emergency care or Medicaid coverage./adv
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Additionally, the rule eliminates federal exchange coverage for gender-affirming care under the ACA’s essential health benefits, which would shift financial responsibility for such coverage to individual states. For Maryland, this change adds further pressure on already stretched public health resources. The lawsuit argues that the final rule violates the Administrative Procedure Act by being arbitrary, capricious, and contrary to law.
The ACA has played a significant role in Maryland since the creation of its state-run exchange in 2011, cutting the uninsured rate in half and reducing individual market premiums by 30% since 2019. State officials warn that the new federal policy could reverse that progress, with potential long-term impacts on healthcare affordability and access across the state.
Article by multiple contributors, based upon information from the Office of the Maryland Attorney General press release dated July 17, 2025
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