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A federal judge has temporarily halted major changes to the Affordable Care Act (ACA) health insurance marketplace, just days before they were set to take effect.
U.S. District Judge Brendan Hurson issued the ruling Friday, pausing enforcement of the Department of Health and Human Services’ Marketplace Integrity and Affordability Rule. The regulation, scheduled for rollout on August 25, aimed to curb alleged fraud and misuse of federal subsidies.
The decision comes after Chicago, Baltimore, and public health groups sued to stop the rule, warning it could strip health coverage from more than two million Americans, especially low-income enrollees. Judge Hurson found the challengers had raised strong claims that several provisions may conflict with the Affordable Care Act.
As a result, nearly all contested measures—including new fees and tougher eligibility requirements—will remain on hold until the court issues a final judgment.
Chicago Mayor Brandon Johnson praised the ruling, calling it “a critical step to protect residents’ access to affordable insurance and reduce strain on community clinics.”
The lawsuit, filed July 1, is still ongoing, as is a separate challenge brought by Democratic attorneys general.
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News of the ruling also boosted health insurer stocks, with Centene, Cigna, Molina, Elevance, and UnitedHealth all rising amid expectations that premium hikes tied to the rule may be less severe in 2026.
How do you think this ruling will impact the future of the Affordable Care Act? Share your thoughts with JD Journal’s legal community.
