The National Association of Benefits and Insurance Professionals (NABIP) is suing the Centers for Medicare & Medicaid Services (CMS) over a policy that temporarily bars new ACA insurance agents and brokers from registering to sell Affordable Care Act (ACA) Marketplace coverage for 2027.
What Is the CMS Agent Registration Moratorium?
CMS started a temporary pause on September 26, 2026, that prevents agents and brokers without a Plan Year 2026 federal Exchange agreement from completing registration for Plan Year 20276. The restriction applies to federally facilitated Marketplaces and state-based Marketplaces using the federal platform.
It doesn’t apply to registration through state-based Marketplaces operating their own platforms. The moratorium is scheduled to remain in effect until February 1, 2027, unless CMS changes or lifts it earlier.
That means agents entering the federal Marketplace for the first time, as well as certain previously registered agents who lack a 2026 agreement, are unable to assist consumers with federal Marketplace enrollments during the upcoming OEP.
Why Did CMS Implement the Moratorium?
CMS says the decision is part of a broader effort to reduce unauthorized enrollments, improper coverage changes, and misuse of consumer information. According to CMS, agents who first registered for the 2026 plan year accounted for a disproportionate share of certain enrollment irregularities.
For example, CMS reported that enrollments associated with these newly registered agents were:
- 2.8 times more likely to have unresolved income verification issues.
- 2.7 times more likely to be missing Social Security numbers.
- 2.6 times more likely to have unresolved citizenship or immigration verification issues.
These findings show risk patterns among enrollment groups, but they don’t mean every new agent acted improperly. CMS says that pausing registrations for now gives them time to improve identity checks, monitoring, and consumer protections.
Why Is NABIP Suing CMS?
On October 15, NABIP filed a federal lawsuit against HHS and CMS, seeking emergency court intervention to stop the moratorium. According to NABIP, the restriction affects nearly 19,000 agents and brokers who would otherwise be preparing to participate in the 2027 Marketplace.
NABIP isn’t arguing against stronger fraud prevention. Instead, the association believes legitimate, licensed professionals shouldn’t be excluded because of misconduct committed by others.
The lawsuit challenges CMS’s legal authority and the process used to establish the moratorium. NABIP is asking the court for temporary relief while the broader legal questions are resolved.
NABIP wants qualified agents to have the opportunity to register and serve consumers rather than being forced to sit out Open Enrollment.
What ACA Agents Should Do Right Now
While the lawsuit moves through the courts, agents should continue preparing under the rules currently in effect. Verify your registration status.
Returning agents should confirm their 2027 Marketplace training, agreements, and registration are complete. Review your agency’s staffing plans.
Identify any producers affected by the moratorium, and avoid assigning them federal Marketplace enrollment responsibilities for which they aren’t authorized. Follow official updates and watch for CMS announcements, NABIP communications, and court decisions that can change registration eligibility.
Keep your compliance procedures solid. Getting consumer authorization, providing accurate application details, and keeping proper records are important no matter what happens with the lawsuit.
Remember, the moratorium will stay in effect unless a court or CMS officially changes it.
What Happens Next?
The lawsuit has just begun, and NABIP is seeking a temporary injunction to lift the moratorium before the 2027 enrollment season begins. The court could grant emergency relief, deny it, or require additional steps before making a decision.
All ACA agents should work under the current 2027 rules, with the existing moratorium in place. Strengthening Marketplace security while preserving access for qualified professionals is the goal to achieve for the ACA consumer and the insurance professionals serving them.
The Agility Difference
Agility’s ACA experts are here to answer any ACA agents’ questions about this and the best ways to finish your OEP preparations. You can call (866) 590-9771 or email support@enrollinsurance.com for immediate assistance from the ACA team.
If you have questions or want to talk to our Medicare, CHOICE, Group, life, or ancillary experts, reach out to our dedicated Producer Support at this same phone number or email address. We can add you to our weekly email list for tips and updates.
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