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24 ¦ JULY 27, 2020 NEWS

Federal Judge Blocks
Trump ACA Rule Change

By Jason Grant

A New York State Attorney General Letitia A. James.
federal magistrate judge has blocked a Trump “The new rule is arbitrary and capricious,” wrote
administration Affordable Care Act rule Beeler in setting aside the new rule, which was set
change related to abortion billing, declaring to go into effect this summer. Her decision, issued
it without “reasoned explanation” and giving state on Monday night, granted summary judgment to
Attorney General Letitia James and others in her co- James and a coalition of seven state attorneys gen-
alition of states a hard-fought victory. eral and one from the District of Columbia who had
“In sum, agencies can change their policies when asked that the rule be vacated because, among other
they provide a reasoned explanation for the change,” reasons, it violated the federal Administrative Pro-
wrote U.S. District Magistrate Judge Laurel Beeler of cedure Act and was contrary to the ACA.
the Northern District of California in addressing a James and California Attorney General Xavier
Department of Health and Human Services change Becerra led the coalition of states and the District
to the ACA that would have required separate abor- of Columbia. Their efforts involved launching a 73-
tion-based insurance billing. page, declaratory-based federal lawsuit in California
“But here, HHS—by requiring two [insurance] in January seeking to stop the rule’s implementation;
issuer bills [one for abortion coverage and one a 43-page motion for summary judgment lodged in
otherwise] and two consumer transaction-pay- March in the action; and issuing detailed public let-
ments, at substantial transactional cost to states, ters sent to HHS secretary Alex M. Azar II in both
issuers and enrollees and without any corre- April and July asking the Trump Administration
sponding benefit—does not advance a reasoned to withdraw, suspend indefinitely or delay the rule.
explanation for deviating from its prior rule and James and other state A.G. offices also issued nu-
industry practice.” merous news releases about their actions.

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