A federal judge has paused the CMS ban on new Marketplace agents, and an insurance agent license remains valid as federal Marketplace registration resumes. The November 5 order gives newly eligible agents a path to resume federal training and registration, but it does not itself complete their registration or authorize Marketplace activity. The current Open Enrollment Period runs November 1, 2026, through January 15, 2027.
RULING SUMMARY
On November 5, Judge Stephanie A. Gallagher of the U.S. District Court for the District of Maryland stayed the interim final rule and 2027 moratorium in National Association of Benefits and Insurance Professionals v. Kennedy (No. SAG-26-04311) and Health Agents for America v. Kennedy (No. SAG-26-04415).
The court found that NABIP and Health Agents for America were likely to succeed on their claim under the Administrative Procedure Act (APA), 5 U.S.C. § 553. The order also found likely irreparable harm and determined that the balance of equities and public interest favored preliminary relief. The November 5 court order stays the rule and moratorium under 5 U.S.C. § 705 pending final resolution of the cases.
Status: Preliminary stay in effect; litigation pending.
Training deadline: CMS must make Plan Year 2027 training for new agents and brokers available by close of business November 6.
Next filings: A status report is due within seven days of the order, and parties must jointly propose a schedule by November 12.
TIMELINE
| Date | Recorded event |
|---|---|
| September 21–22, 2026 | CMS Administrator Mehmet Oz approved the rule September 21; the rule took effect September 22. |
| September 23, 2026 | The rule was published as 91 Fed. Reg. 60317. |
| October 15, 2026 | NABIP filed suit. Health Agents for America filed a separate case. |
| November 5, 2026 | The court issued a preliminary stay of the rule and moratorium. |
| November 6, 2026 | CMS must make Plan Year 2027 training for new agents and brokers available by close of the next business day. |
| November 12, 2026 | The defendants’ status report is due within seven days; the parties’ joint proposed schedule is also due. |
| February 1, 2027 | Original scheduled end date of the moratorium. The moratorium is currently stayed pending final resolution. |
WHAT THE MORATORIUM COVERED
The CMS interim final rule, published as 91 Fed. Reg. 60317, paused registration for Plan Year 2027 on the Federally-facilitated Exchanges for agents and brokers without a Plan Year 2026 Exchange agreement. The pause was scheduled to remain in effect until February 1, 2027. CMS stated that the restriction did not apply to registrations on state-based Exchanges. The rule and its stated scope are set out in the Federal Register publication.
This was a federal Exchange registration restriction, not a state licensing action. An agent’s state license remained valid throughout the moratorium, subject to the state’s normal requirements. The restriction concerned the separate federal agent registration process used to assist consumers through HealthCare.gov and Exchanges using the federal platform.
WHY CMS ISSUED THE RULE
CMS cited concerns about unauthorized enrollments, unauthorized plan changes, and other noncompliant practices. The rule reported more than 624,000 consumer complaints from 2023 through 2025, including about 300,000 in 2025. It also reported that agents newly registered for Plan Year 2026 represented about 11% of agents with active enrollments, while accounting for about 30% of the 569 notices of intent to terminate issued in July and August 2026.
The July 2026 Government Accountability Office report, Health Insurance Marketplaces: CMS Needs Stronger Controls to Prevent Unauthorized Actions by Agents and Brokers, identified 299,604 consumer complaints tied to confirmed unauthorized enrollments and plan switches on the federal platform in 2025. The GAO report provides a separate account of the reported control concerns.
Procedural distinction: The court’s preliminary stay rests on the APA notice-and-comment issue. CMS issued the rule without advance notice-and-comment, relying on a “good cause” exception for an interim final rule. The court found the plaintiffs likely to succeed on their claim that this procedure did not satisfy APA § 553. The ruling is not a finding that CMS’s fraud concerns were unfounded, and it does not resolve the underlying cases.
WHAT THE ORDER DOES, AND DOES NOT DO
The order does:
- Stay the interim final rule and 2027 broker moratorium while the litigation proceeds.
- Require CMS to make 2027 training for new agents and brokers available by close of November 6.
- Require a compliance status report within seven days.
- Require the parties to propose a schedule for the next litigation steps by November 12.
The order does not:
- Decide the cases finally or provide a permanent ruling on the rule.
- Automatically complete an agent’s federal registration or training.
- Replace state licensing requirements or other federal Exchange requirements.
- Confirm whether CMS will appeal. That status has not been established.
The moratorium’s original end date was February 1, 2027, but the stay is in place pending final resolution. The court’s order sets the current procedural status; later filings or orders may change it.
AGENT ACTION CHECKLIST
For a newly licensed Texas agent who passed the state examination in September and expected to assist Marketplace consumers, the federal pause blocked the new registration pathway, not the state license. The order changes the federal process, but completion remains necessary before assisting consumers through the federal Exchange.
- Resume or complete Plan Year 2027 training as CMS makes it available.
- Proceed with the required Exchange registration steps and retain confirmation of each completed step.
- Keep records of attempted registrations, messages, and system responses during the moratorium.
- Monitor the November 12 status report and subsequent court filings for changes to the stay.
- Confirm that the state license and applicable line of authority remain current.
- Use the existing National Producer Number (NPN) as the agent identifier where required; the moratorium did not suspend or replace it.
- Agencies that hired new agents may resume onboarding for federal Marketplace assistance, subject to completion of applicable CMS requirements.
CONSUMER ENROLLMENT AND VERIFICATION
The stay may increase the number of agents eligible to complete federal Exchange registration during this enrollment period. It does not mean every newly licensed agent is already registered or ready to assist through HealthCare.gov. Registration, training, and other applicable requirements still need to be completed.
Consumers can check an agent’s license through the relevant state insurance department and ask for the agent’s NPN. Before providing sensitive personal information, consumers should confirm who is requesting it and how it will be used. Consumers should review Marketplace notices and account details and confirm that any application, enrollment, or plan change reflects an action they authorized. Suspected unauthorized enrollment should be reported to the Marketplace call center.
The compliance concerns cited by CMS remain relevant to consumers even while the rule is stayed. The court’s procedural ruling does not resolve those concerns or determine how CMS will address them as the cases continue.
DIRECTORY RECORDS AND LIMITATIONS
VerifiedAgent provides searchable agent listings by state. Consumers can use the Texas insurance agent directory or the state-selection directory as a starting point for finding agent profiles and recorded information, including available NPNs and licensing details.
A directory profile is not proof of current licensure, federal Exchange registration, or eligibility to assist with a specific Marketplace transaction. Current state license status and HealthCare.gov registration should be independently confirmed through the relevant official systems.
CURRENT STATUS
For the newly licensed Texas agent, the state insurance license stayed valid during the moratorium. The November 5 court order pauses the federal restriction and requires CMS to make new-agent training available by November 6. The agent may proceed with training and registration as the federal process reopens, but the order is preliminary, the litigation remains pending, and authorization to assist consumers depends on completion of applicable requirements.