by Suzanne Potter, Producer
People who are part of the Deferred Action for Childhood Arrivals program, known as DACA, will be dropped from their Covered California health plans at the end of August.
The change comes after the Trump administration altered a Biden-era rule that had recognized DACA recipients as “lawfully present” for the purpose of health coverage. By rolling back that definition, federal officials effectively revoked eligibility for thousands of immigrants who relied on marketplace plans to access affordable medical care.
Christine Smith, policy and legislative advocate for the nonprofit Health Access California, said the decision leaves very little time for affected families to prepare.
“If you’re enrolled in Covered California and you’re a DACA recipient, the Trump administration just ended your coverage,” Smith emphasized. “People should use as much of your health care as you can before the August 31st deadline.”
The Centers for Medicare and Medicaid Services defended the policy shift, arguing it will reduce costs to taxpayers. Covered California officials estimated that around 2,400 DACA recipients in the state will lose their coverage. These are individuals who typically earn too much to qualify for Medi-Cal yet work in jobs that do not provide health insurance benefits. While they will still be able to buy private insurance on the open market, premiums are often far higher without subsidies. Those who prepaid for coverage may request refunds for unused months.
Smith warned the fallout will extend beyond the families directly affected, straining hospitals and emergency departments across the state.
“The lines in the ERs are going to be longer because people are not going to be able to get affordable preventive care,” Smith projected. “They’re just going to get sicker and then end up in the ERs. People will overall incur more medical debt. Hospitals will have more uncompensated care.”
The policy shift does not only affect California. Nationwide, DACA recipients will be cut off from state-based insurance marketplaces. As of mid-July, about 538,000 people across the country were enrolled in the DACA program. None of them will be eligible to purchase plans with the help of premium subsidies or cost-sharing reductions.
Advocates say the change threatens to undo years of progress in reducing the number of uninsured people in immigrant communities. They also note that many DACA recipients are essential workers who contribute to local economies and pay taxes. Without affordable health coverage, they will face more barriers to staying healthy and supporting their families.
