A collection of 23 states is suing the Trump administration over a rule the states say eliminated healthcare protections for transgender Americans.
The states, which are led by California, Massachusetts and New York, argue in the lawsuit filed Monday that the rule finalized last month violates the Affordable Care Act (ACA)—which prohibits discrimination in federal healthcare such as Medicare, Medicaid and the exchanges—and the equal protection guarantee within the U.S. Constitution.
“Too many Americans already struggle to access essential care. We don’t need discrimination to make it worse,” California Attorney General Xavier Becerra said in a statement.
The Trump administration rule essentially negates an Obama-era regulation that bars providers from getting federal funding if they discriminate based on gender identity under the ACA.
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But the Department of Health and Human Services (HHS) reversed the regulation, saying it would save $2.9 billion in “undue and ineffective regulatory burdens over the next five years.”
HHS’ Office for Civil Rights said it would enforce bans on discrimination based on race, color, national origin, disability, age and sex.
But HHS argued that the Obama administration’s rule protecting transgendered individuals goes against the intent of federal law. HHS said in a fact sheet on the rule released last month that neither the ACA nor Title IX mentions discrimination based on sexual orientation or gender identity.
The rule applies to plans offered on the ACA’s insurance exchanges.
The lawsuit said that the rule not only violates the ACA but also the Administrative Procedure Act that governs how regulations should be released. The rule also ignores a Supreme Court ruling last month that found the Civil Rights Act prohibits discrimination based on sexual orientation or transgender status, the lawsuit complaint added.
“This is one of many actions taken by HHS and other agencies during the Trump administration to roll back protections for LGBTQ people,” the complaint said.
HHS did not immediately return a request for comment as of the time of publication.
The rule has garnered widespread condemnation from the entire healthcare industry.
The American Medical Association, the American Hospital Association and insurance industry group America’s Health Insurance Plans slammed the rule, saying it will make it harder for transgendered individuals to get access to healthcare.