Medicaid Monitor
Policy Intelligence
Medicaid Monitor
Policy Intelligence
Updated 1:02 PM MT
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Legal·July 17, 2026

Federal Judge Blocks CMS Rule Expanding Catastrophic ACA Plans

A federal judge issued a stay Thursday halting implementation of a CMS final rule that would have expanded access to catastrophic health plans in the ACA marketplace. The court found the policies were likely to increase costs and reduce access to comprehensive coverage. The ruling blocks the administration's changes pending further litigation. While the decision directly affects the ACA individual market, Medicaid managed care organizations operating in dual or integrated programs may see indirect effects on coverage transitions and risk pool composition.

Why it matters

MCOs with ACA marketplace products or serving dual-eligible populations may face operational adjustments if members previously expected to transition to catastrophic plans now remain in comprehensive coverage or shift to Medicaid.

Managed Care

Read the full article at healthcaredive.com

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