In a significant policy development, individuals eligible under the Deferred Action for Childhood Arrivals (DACA) program
will be able to receive subsidized coverage under the Affordable Care Act (ACA), widely known as Obamacare. The upcoming
rule, planned for release by the Biden administration,
modifies the parameters for who is considered “lawfully present” and therefore eligible to purchase a qualified health plan
through the federal and state marketplaces.
According to details
unveiled by the Department of Health and Human Services (HHS), these DACA recipients, often referred to as “Dreamers”,
will no longer be excluded from the definition of “lawfully present”. As a result, they will be able to access premium tax
credits and cost-sharing reductions available under qualified health plans. This will commence from November 1, 2024,
coinciding with the start of the open enrollment period.
As HHS Secretary Xavier Becerra stated, the move aims to improve health coverage accessibility for DACA recipients,
highlighting their vital contributions as students, teachers, social workers, doctors, and nurses among others.
He further pointed out that approximately a third of DACA recipients currently do not have health insurance, implying
that the enhanced eligibility could lead to substantial improvements in their health and wellbeing, as well as positive
impacts on the broader economy.
The rule also extends further benefits to DACA recipients, giving them the option to enroll in a basic health program that
offers Medicaid-esque coverage. This will be available in select states for individuals earning up to 200% of the poverty level.
The Centers for Medicare & Medicaid Services (CMS), which issued the rule, estimates a potential enrollment increase of
around 100,000 previously uninsured DACA recipients in Obamacare or basic health plans.
It’s important to note that the CMS had initially excluded DACA recipients from the agency’s definition of “lawfully
present”. The administration’s prior stance was influenced largely by the Department of Homeland Security’s adoption of
the DACA policy, which did not involve eligibility for insurance affordability programs. The upcoming rule represents a
notable shift in this policy interpretation. For more comprehensive information on the proposed rule and future
developments, legal professionals can access the full text released in April 2023.
The DACA program allows undocumented immigrants who arrived in the US as children to continue residing and working in the
country on a renewable two-year basis. It was established in 2012 under President Barack Obama’s administration, but has
since faced multiple legal challenges and opposition from conservative groups.