The new rule aims to lower monthly health insurance bills by giving insurance companies more freedom to create cheaper plans. It introduces stricter background checks to prevent dishonest brokers from switching people’s coverage without permission. The proposal also makes it easier for younger adults and others to buy high-coverage, low-premium catastrophic plans.

The federal government has just announced a major overhaul of the health insurance marketplace designed to make coverage more affordable and put an end to shady enrollment tactics. The Centers for Medicare & Medicaid Services (CMS) has laid out a plan for 2027 that focuses on giving consumers more choices while ensuring that taxpayer dollars are spent correctly. The goal is to clean up the system by stopping fraudulent agents from making unauthorized changes to people’s policies and to lower the high cost of monthly premiums.

A key part of this proposal involves giving insurance companies the green light to get creative with their plan designs. Instead of forcing everyone into the same types of policies, insurers would be allowed to offer plans with lower deductibles or even multi-year catastrophic coverage. This type of plan, which typically has lower monthly payments but high coverage once you meet the deductible, would also become available to more people, including those over 30 who are struggling with high costs. By removing federal limits that have previously restricted innovation, the government hopes to foster competition, which should drive prices down for everyone.

Alongside these changes to plan options, the proposed rule takes a hard line on accountability and fairness. There will be a major crackdown on the verification of income and citizenship to ensure that government subsidies only go to those who truly qualify. This is paired with strict new conduct rules for agents and brokers to prevent misleading marketing and unauthorized plan switches that have plagued consumers in recent years. By weeding out bad actors and ensuring subsidies are used correctly, the administration aims to restore trust in the health insurance marketplace, ultimately leading to a system that is simpler, safer, and more affordable for the average American.

Driving Down Costs and Improving Affordability

CMS also proposes updates to better align Exchange policy with statutory intent and address key cost drivers, including:

• Restoring fiscal discipline around Essential Health Benefits to ensure federal subsidies are not used to finance state-mandated benefits that increase costs for both consumers and taxpayers.
• Modernizing network adequacy and provider access reviews to improve transparency while reducing duplicative oversight.

These reforms aim to lower premiums, improve access, and give consumers greater control over their health coverage decisions.

The Trump Administration remains committed to maintaining stable, competitive, and affordable health insurance markets while ensuring federal programs operate with integrity and accountability. CMS welcomes public input on the proposed rule and looks forward to working with states, issuers, agents, brokers and stakeholders to finalize policies that put patients and taxpayers first.

To review the proposed rule, visit https://www.federalregister.gov/d/2026-02769.

Public comments must be submitted by March 13, 2026.

To review the proposed rule fact sheet, visit https://www.cms.gov/newsroom/fact-sheets/hhs-notice-benefit-payment-parameters-2027-proposed-rule.