NJ and NY sue to block federal rule expanding catastrophic health plans

New Jersey and New York filed a federal lawsuit in the Northern District of California to block a CMS rule they say undermines the Affordable Care Act by expanding eligibility for low-cost catastrophic health plans, tightening income verification, and shifting costs to states. They warn the changes could increase premiums and drive more people from coverage, noting thousands in both states already dropped plans after tax credits expiration; the suit is backed by nearly two dozen Democratic‑led states.