The National Association of Benefits and Insurance Professionals (NABIP) has filed a lawsuit against the U.S. Department of Health and Human Services (HHS) and the Centers for Medicare & Medicaid Services (CMS), challenging a new registration moratorium that could prevent nearly 19,000 health insurance agents and brokers from participating in the federal Affordable Care Act (ACA) Marketplace.
The lawsuit challenges an HHS rule allowing CMS to impose registration moratoriums and CMS’s subsequent decision to restrict new agent and broker registrations ahead of the 2027 Open Enrollment period.
Under the moratorium, agents and brokers who were not registered with the federal Marketplace for Plan Year 2026 cannot register for Plan Year 2027. As a result, thousands of licensed insurance professionals could be unable to assist consumers with Marketplace enrollments.
According to NABIP, CMS estimates that nearly 19,000 agents and brokers will be affected.
NABIP argues that HHS adopted the rule without providing an opportunity for public comment and that CMS imposed the moratorium without evaluating individual agents or determining whether they had engaged in misconduct.
The association claims the actions violate the Administrative Procedure Act and the Affordable Care Act.
Mychal Walker, president of NABIP, said the organization supports efforts to prevent fraudulent enrollments and unauthorized activity in the Marketplace but believes the moratorium unfairly affects legitimate insurance professionals.
Walker said CMS should focus on identifying agents involved in fraudulent activity rather than restricting thousands of licensed agents who have not been accused of wrongdoing.
NABIP also warned that the moratorium could limit consumers’ access to professional assistance when comparing health plans, determining eligibility and enrolling in coverage.
The association said it has previously urged CMS to strengthen identity verification, consumer authorization requirements and other safeguards to address Marketplace fraud.
Through the lawsuit, NABIP is seeking court orders to overturn the HHS rule and CMS moratorium and require CMS to provide the training and registration necessary for affected agents and brokers to participate in the federal Marketplace.
The legal challenge comes ahead of the 2027 Open Enrollment period, when consumers rely on licensed agents and brokers to help them evaluate and select health insurance coverage.
The allegations are NABIP’s legal claims, and the court has not yet ruled on the validity of the challenged policies.
Information for this article was provided by National Association of Benefits and Insurance Professionals (NABIP). Views and claims expressed in this article are those of the source company and do not necessarily reflect the views of AgencyEquity.com. This article may have been edited with the help of AI.
