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News
A major insurance trade group is taking the Trump administration to court over its sudden freeze on new ACA broker registrations. The National Association of Benefits and Insurance Professionals (NABIP) argues the HHS broke the law by skipping the public comment process and lacks the authority to impose the ban. The lawsuit asks the court to strike down the rule and restore broker access before the upcoming open enrollment period.
The Trump administration's crackdown on ACA broker fraud is now facing a legal challenge. The National Association of Benefits and Insurance Professionals (NABIP) — representing over 100,000 licensed agents and brokers — filed a lawsuit against HHS in Maryland district court, arguing the agency violated the Administrative Procedure Act by bypassing the standard public comment process when it imposed an immediate freeze on new broker registrations for the 2027 plan year.
The freeze, announced in September, bars any agent or broker who didn't participate in 2026 ACA enrollment from registering for 2027 — locking them out of the entire upcoming open enrollment period (Nov. 1 – Jan. 15). The CMS justified the move as a fraud-prevention measure, citing that new brokers accounted for 30% of compliance-related terminations despite making up only 11% of all brokers. But NABIP counters that the evidence is shaky and that the vast majority of new brokers have clean records.
By the Numbers:
Why it matters: The lawsuit could determine whether thousands of legitimate brokers can participate in this year's open enrollment — a critical access point for millions of Americans shopping for coverage. If the freeze stands, reduced broker capacity could shrink enrollment and destabilize insurance risk pools at a time when enhanced subsidies have already expired and premiums are rising.
