Wisconsin joins 21 states in lawsuit against Trump administration over ACA rule

Attorney General Josh Kaul announced Wisconsin's participation in a coalition of 21 states suing the Trump administration over a new rule governing 2027 Affordable Care Act marketplace plans. The lawsuit, filed in a Northern California federal court, aims to halt provisions that would expand catastrophic-only options and tighten income verification, which states say will deter younger, healthier individuals from enrolling in standard plans.

Officials contend this shift would age the risk pool and increase premiums for remaining participants. Federal estimates suggest enrollment could drop by 2 million in 2027 and as many as 5 million by 2030. In Wisconsin, marketplace enrollment has already slipped, with about 245,000 residents covered, a 15 percent decline from the previous year. The administration argues the rule will improve oversight, broaden consumer choice, and reduce fraud, but the plaintiffs view it as a threat to the ACA’s affordability goals.