A federal judge has lifted CMS’ freeze on new ACA marketplace broker registrations, clearing the way for approximately 19,000 licensed agents and brokers to assist consumers with 2027 coverage.
The U.S. District Court for the District of Maryland ruled Nov. 5 in favor of the National Association of Benefits and Insurance Professionals, which challenged the moratorium in an Oct. 15 lawsuit. The ruling immediately lifts the registration restrictions, with training for newly eligible agents and brokers set to begin Nov. 6, according to the association.
CMS implemented the moratorium Sept. 22, blocking agents and brokers who had not registered with the federally facilitated Marketplace for the 2026 plan year from completing registration for 2027. The freeze was originally set to remain in effect through Feb. 1, 2027.
The move was part of a broader crackdown on suspected ACA marketplace fraud. CMS also said Sept. 22 that it had canceled 2026 ACA policies covering 760,000 people. The agency estimated that broker noncompliance leading to unauthorized enrollments could account for $1.5 billion to $6.6 billion in annual improper federal spending, depending on the methodology used.
CMS said the temporary registration freeze was intended to prevent unauthorized enrollments and other improper practices while the agency implemented additional safeguards.
The National Association of Benefits and Insurance Professionals argued that the policy prevented thousands of licensed professionals from assisting consumers during the ACA’s open enrollment period, which began Nov. 1.
“Today’s ruling is a significant victory for licensed agents and brokers and the consumers who rely on their expertise,” NABIP President Mychal Walker said in a Nov. 5 statement. “With open enrollment already underway, every day matters.”
The decision allows affected agents and brokers to complete the required training and registration to assist consumers with selecting coverage for 2027.
“NABIP supports strong oversight and meaningful action to prevent fraud and protect consumers,” Mr. Walker said. “Those efforts must also preserve the ability of qualified, licensed professionals to serve their clients.”
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