In the lawsuit, the coalition of 12 Attorneys General, alleged that the DOL violated the Administrative Procedure Act when it promulgated the AHP rule.
In addition, they argued that the AHP Rule violate the ACA and ERISA because it will undo critical federal consumer protections and improperly expands access to AHPs.
Furthermore, the Attorneys General emphasized that the AHP rule is “arbitrary and capricious.”
According to them, The “DOL failed to justify its drastic departure from nearly forty years of settled law under ERISA.” It “failed to account for the history of fraud and abuse committed by AHPs.”
In a statement, Underwood said their lawsuit “seeks to safeguard the federal protections under the ACA that help guarantee access to quality, affordable healthcare.”
On the other hand, Gov. Cuomo said, “We have zerop tolerance for any action that undermines the Affordable Care Act. The Trump Administration is once again waging an assault against the fundamental rights of Americans to have access to safe, high quality, affordable health care. We are suing the federal government to protect health care for New Yorkers and to fight back against these federal attacks.”
