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This audio is auto-generated. Please let us know if you have feedback<\/a>.<\/p>\n Dive Brief:<\/p>\n Dive Insight:\u00a0<\/p>\n The final rule makes several changes to exchange enrollment and eligibility. For example, it shortens the annual open enrollment period by one month, and ends a special sign-up period for lower-income beneficiaries.\u00a0<\/p>\n It also lessens the amount of time before financial assistance is revoked for people who fail to reconcile their tax information with their eligibility for subsidies.\u00a0Enrollees also won\u2019t automatically receive an extension to verify their income if they face challenges during the sign-up process.\u00a0<\/p>\n The new lawsuit, brought by 20 Democrat state attorneys general and Pennsylvania Gov. Josh Shapiro, alleges the regulation will reverse growth in ACA marketplace enrollment. Sign-ups for ACA plans broke records again this year<\/a>, with more than 24 million beneficiaries enrolling into the coverage.\u00a0<\/p>\n Additionally, if the rule goes into effect, states will incur \u201cunrecoverable compliance costs\u201d\u00a0<\/strong>from updating technology systems, retraining staff, and initiating advertising and outreach to beneficiaries, the lawsuit argues.<\/p>\n States will also lose tax revenue derived from insurance premiums, and face increased expenses for providing healthcare to residents who will become uninsured following the rule\u2019s implementation, according to the suit.\u00a0<\/p>\n The regulation also bans coverage of any \u201csex-trait modification procedure,\u201d which plaintiffs said diverges from longstanding HHS policy that prioritized states\u2019\u00a0flexibility in how they manage the exchanges.<\/p>\n\n