A federal judge agreed with brokers’ arguments that the freeze, instituted by the CMS to combat fraud on the exchanges, would cause irreparable harm to agents.

A Maryland district court struck down the CMS’ moratorium on new brokers in the Affordable Care Act exchanges on Thursday, arguing the trade associations that sued would be likely to succeed should the litigation continue.

The ruling paves the way for new agents and brokers to begin training on Friday and participate in open enrollment, which started this week and ends in mid-January.

The Trump administration placed a moratorium on new ACA broker registrations in September, effectively stopping new markets from selling policies on Healthcare.gov during this year’s open enrollment season, in an attempt to prevent what it says were improper enrollments and fraud in the exchanges.

Fraud has been a legitimate concern on the exchanges, and the CMS has pointed fingers at agents and brokers specifically for contributing heavily to unauthorized enrollments. Nearly 19,000 agents and brokers were prevented from registering, according to the CMS.

Two trade groups representing brokers — the National Association of Benefits and Insurance Professionals and Health Agents for America — sued over the moratorium last month. The NABIP argued regulators violated the Administrative Procedure Act by not giving the public a chance to comment on the broker freeze, and HAFA argued the CMS failed to consider the financial harm the moratorium would inflict on broker organizations.

The courts agreed with both arguments, adding that the trade associations’ members “are likely to suffer irreparable harm in the absence of preliminary relief” and that lifting the moratorium is in the public’s best interest.

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