Press Release
Contact
New Hampshire Joins Multistate Lawsuit Against CMS Over Expanded Definition of “Lawfully Present” for Healthcare Benefits
Concord, NH – Attorney General John M. Formella announces that New Hampshire, along with a coalition of states, has filed a lawsuit in the U.S. District Court for the District of North Dakota. The suit challenges a new rule from the Centers for Medicare & Medicaid Services (CMS) that expands the definition of "lawfully present" to include certain categories of individuals that are in the U.S. illegally.
"New Hampshire is committed to maintaining the integrity of our laws and the rules governing public benefits," said Attorney General Formella. "We believe this new CMS rule ignores the clear intent of Congress and threatens to misuse taxpayer money from New Hampshire and across the nation. It's crucial that federal regulations follow legal limits established by Congress and don't go beyond what the law allows to ensure that taxpayer funds are used properly."
The complaint argues that the CMS rule, published on May 8, 2024, wrongly includes deferred action for childhood arrival (DACA) recipients—who are legally considered unlawfully present— and other non-citizens with work permits as being eligible for Affordable Care Act (ACA) benefits. The final plan, set to take effect November 1, would make more than 200,000 DACA recipients eligible for taxpayer-subsidized health plans.
“In the ACA, Congress limited eligibility to participate in a qualified health plan through a subsidized health exchange to citizens or nationals of the United States and individuals ‘lawfully present’ in the United States,” the complaint reads.
The states believe this rule undermines the criteria established by Congress for public benefits and that it therefore exceeds the Administration’s authority.
“New legislation would be required to expand the criteria for receiving public benefits. This new rule ignores and effectively overturns the clear criteria established by Congress for receipt of this public benefit. We are asking the Court to uphold the bedrock principle of our Constitutional order that Congress makes the laws, and the executive branch enforces them.” Formella added.
The lawsuit asks the Court to block the CMS rule and prevent its implementation, arguing that it could have serious financial consequences for states and harm the integrity of federal public benefit programs.