In what appears to be her 62nd legal challenge against the Trump administration since January 21, 2025, Michigan Attorney General Dana Nessel has joined attorneys general from 20 other states in yet another lawsuit, this time challenging a new federal rule governing Affordable Care Act (ACA) health insurance plans for 2027.

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The coalition filed suit in federal court in California on July 31, arguing the changes would make health insurance more expensive, reduce enrollment, and undermine the ACA, better known as Obamacare.

More choices or fewer protections?

At the heart of the dispute is the Trump administration’s effort to expand access to catastrophic health insurance plans. CMS (Centers for Medicare & Medicaid Services) says the change gives consumers more choice by allowing more people to purchase lower-premium coverage that may better fit their budgets. The administration also says the rule strengthens income verification for federal premium subsidies, improves program integrity, addresses fraud and unauthorized enrollments, and helps ensure financial assistance goes only to eligible recipients. CMS further argues some of the changes will help lower premiums and provide consumers with additional coverage options.

Nessel sees it differently. She argues the rule would expand access to catastrophic health plans, which provide limited benefits and much higher out-of-pocket costs, potentially leaving consumers with larger medical bills. She also objects to new documentation and verification requirements for premium tax credits and other provisions she says could cause eligible people to lose coverage because of added paperwork and administrative hurdles.

Another chapter in an ongoing legal war.

For Nessel, the lawsuit is simply the latest in a long-running legal battle against the Trump administration. Since Trump returned to the White House, Michigan’s attorney general has repeatedly joined multi-state lawsuits challenging federal policies on immigration, environmental regulations, education, federal funding, and healthcare.