Another trade association is taking the HHS and CMS to court over their decision to lock out new agents and brokers from participating in open enrollment for 2027 Affordable Care Act plans.

In September, the HHS and CMS released an interim final rule preventing agents and brokers without a previous registration in the exchanges from signing up to help consumers in this year’s open enrollment period. The moratorium is scheduled to last until February, which — given open enrollment ends the month before — effectively prevents new agents and brokers from helping consumers sign up for plans for 2027.

Regulators said their goal is stopping fraud, pointing to data showing that most improper enrollments — like signing consumers up for plans or switching them from one plan to another without their approval — are tied to new agents and brokers in the exchanges. The pause will give the CMS time to roll out heightened guardrails, such as enhanced identity verification and monitoring.

The policy was effective immediately, without an opportunity for the public to weigh in. The Trump administration said the quick turnaround was necessary to prevent new agents and brokers from rushing to register before an effective date.

But it’s also a violation of the Administrative Procedure Act, according to the new lawsuit from Health Agents for America.

The complaint says that the freeze will cause significant financial harm to brokers, given many have invested heavily in recruiting and training new workers to help with ACA enrollments for 2027.

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