On June 22, 2026, as required by the court, the Defendants, the Department of Health and Human Services ("HHS"), filed their opposition in City of Columbus et al. v. Kennedy et al. (Columbus II). 

As background, on June 3, 2026, plaintiffs City of Columbus et al. (including municipalities, local governments, and advocacy organizations) filed a complaint alleging that several policies in the 2027 Notice of Benefit and Payment Parameters Final Rule ("NBPP final rule") are unlawful and violate the Administrative Procedure Act. The plaintiffs seek declaratory and injunctive relief in the U.S. District Court for the District of Maryland. See City of Columbus et al. v. Kennedy et al. (Columbus II), No. 26-cv-2215, ECF No. 1 (D. Md. June 3, 2026). On June 15, 2026, the court granted the joint motion to enter a briefing schedule on Plaintiffs’ motion for preliminary relief. 

In their opposition, Defendants argue that the eight challenged provisions of the 2027 NBPP final rule are authorized by the statute and are justified by current data and market conditions to address significant market failures. In addition, Defendants further contend that emergency relief is unwarranted because the Plaintiffs lack standing and have failed to demonstrate irreparable harm. Specifically, Defendants assert that the Plaintiffs' alleged injuries, including downstream economic harm, are speculative and based on uncertain predictions about potential effects of the policies. Defendants also challenge the merits of the complaint, maintaining that Defendants have statutory authority and the policies are not arbitrary and capricious. 

City of Columbus et al. v. Kennedy et al. (Columbus I), No. 1:25-cv-02114 (D. Md.) is a separate, but related case, where the same plaintiffs as Columbus II challenged several provisions of the Marketplace Integrity and Affordability Final Rule (Marketplace Integrity final rule), 90 Fed. Reg. 27074 (June 25, 2025) in the U.S. District Court for the District of Maryland. On August 22, 2025, the court stayed several major components of the Marketplace Integrity final rule on a nationwide basis in response to Columbus I. More recently, on June 12, 2026 (clarified order on June 16, 2026), the court in Columbus I vacated several provisions from the Marketplace Integrity final rule.  Although the NBPP final rule adopted substantially similar provisions to those vacated in the Marketplace Integrity final rule, the court in Columbus II will need to evaluate the NBPP final rule’s administrative record and notice-and-comment to determine whether HHS acted contrary to law or whether the policies are arbitrary and capricious. The Defendants acknowledge the Columbus I decision in their opposition filing. 

We continue to monitor developments in the Columbus II litigation.  Based on the court's current briefing schedule, Plaintiffs' reply is due by July 2, 2026, oral argument is set for July 8, 2026, and a ruling is expected in late July. 

For more information on the NBPP final rule and Columbus II litigation, see our prior publications:

• CMS Issues 2027 HHS Notice of Benefit and Payment Parameters Final Rule | Groom Law Group
• City of Columbus et al. Challenge Provisions of the HHS 2027 Payment Notice Final Rule, Michelle Koltov, Lisa Campbell
• The Friday Evening Surprise: CMS Releases the 2027 Payment Notice Final Rule, Michelle Koltov, Lisa Campbell