California Attorney General Rob Bonta announced on Mar. 13 that he is co-leading a group of 19 attorneys general in submitting a comment letter against a proposed rule by the U.S. Department of Health and Human Services and Centers for Medicare & Medicaid Services, which would expand the use of catastrophic health insurance plans.
The coalition argues that the proposed changes could leave many families with minimal coverage and high out-of-pocket costs, potentially increasing financial risk for consumers. Catastrophic plans currently offer limited coverage and are not required to follow Affordable Care Act (ACA) rules regarding essential health benefits or preexisting conditions. The proposed rule would increase maximum out-of-pocket limits to $15,600 for individuals and $31,200 for families in the 2027 plan year.
“The Trump Administration’s plans to expand catastrophic health plans would indeed be catastrophic for families across the country, leaving them with minimal coverage and huge out-of-pocket bills. After failing to extend ACA subsidies and letting premiums soar for millions of Americans at the beginning of the year, the Trump Administration is now trying to clean up its own mess by offering these policies as the answer to rising health care costs,” Bonta said. “This proposed rule is a dangerous deception that uses affordability as a misnomer for plans that cover essentially nothing, and my fellow attorneys general and I insist that it should be withdrawn.”
The letter from Bonta and his colleagues outlines concerns about errors in the proposed rule, insufficient time for implementation, reimposing previously stayed provisions such as income verification requirements, and changes that could make healthcare more expensive while weakening coverage. Projections suggest up to two million people could lose their health insurance if these changes are adopted.
Bonta leads the California Attorney General’s office, which serves as the state’s chief law enforcement authority focusing on enforcing state laws, protecting public rights and safety, and advancing initiatives in civil rights, consumer protection, and environmental justice according to the official website. The office also promotes transparency through tools like OpenJustice for publishing criminal justice data according to its official website, forms an integral part of California’s executive branch as outlined in the state constitution, exercises authority statewide according to its official website, and advances policies in areas such as civil rights, consumer economic security, and environmental justice according to its official website.
In addition to Bonta, Massachusetts Attorney General Campbell and New Jersey Attorney General Davenport joined attorneys general from Arizona, Colorado, Delaware, Hawaii, Illinois, Maine, Maryland, Michigan, Minnesota, Nevada, New Mexico, New York, Oregon, Rhode Island, Washington, and Wisconsin in signing the letter.
