2 state attorneys general file suit over Trump move on association health plans

New York and Massachusetts will sue the Trump administration following the announced expansion of association health plans, arguing the move will invite “fraud, mismanagement and deception.”

"We will sue to safeguard the protections under the Affordable Care Act and ensure that all families and small businesses have access to quality, affordable healthcare," Attorneys General Barbara Underwood (New York) and Maura Healey (Massachusetts) said in a statement. "We believe the rule, as proposed, is unlawful and would lead to fewer critical consumer health protections."

Proponents of the plans, which do not have to meet regulations established by the Affordable Care Act (ACA), argue the regulation will decrease costs because the plans do not have to meet regulations established by the Affordable Care Act (ACA). Critics claim the move will destabilize the ACA insurance market by encouraging younger, healthier individuals to seek coverage elsewhere.

The Congressional Budget Office estimates four million people take advantage of association health plans.