The National Association of Benefits and Insurance Professionals filed suit Thursday against the Department of Health and Human Services over a policy that bars new agents and brokers from registering to sell Affordable Care Act plans for 2027. The freeze, announced last month, applies to agents and brokers who did not help consumers enroll for 2026 and is expected to last until Feb. 1, covering the entire upcoming open enrollment period. CMS estimates nearly 19,000 marketers are affected.
In its complaint, filed in Maryland district court, NABIP argues HHS violated the Administrative Procedure Act by skipping public comment and lacks statutory authority for the moratorium. The group, which represents more than 100,000 licensed professionals, says the agency's evidence that new brokers cause more improper enrollments is shaky and that the rule harms small businesses and independent agents who had already recruited and trained staff.
Regulators have said the pause is meant to prevent fraud and improper enrollments, a real concern in the exchanges. But NABIP president Mychal Walker said the ban is overbroad, punishing agents with clean records. The lawsuit asks the court to vacate the rule and require CMS to reopen training and registration before open enrollment begins next month.