Biden Administration to Extend Health Insurance Eligibility to DACA Participants

On April 13, the Biden administration announced that Deferred Action for Childhood Arrivals (DACA) participants, known as Dreamers, will soon be eligible for health insurance through Medicaid and Affordable Care Act (ACA) marketplaces. To implement this change, the U.S. Health and Human Services Department (HHS) plans to issue a proposed rule expanding the definition of “lawfully present” in the U.S. for Medicaid and ACA marketplace eligibility to include DACA participants.

The DACA program, established in 2012, provides individuals brought to the U.S. as children without permanent legal status with a renewable, two-year work permit and the ability to reside in the U.S. Last July, counties added permanent language to the American County Platform supporting legislation that would allow certain undocumented immigrants who entered the country as children or for humanitarian reasons to attain legal status, provided they pass background checks, demonstrate good moral character, and meet education requirements.

Currently, around 600,000 individuals are enrolled in DACA, though this number has been declining as the U.S. Citizenship and Immigration Services (USCIS) has been unable to process new applications due to a 2021 injunction.

DACA holders, who are required to pay federal income taxes, generally do not qualify for most federal public benefits. However, in critical situations, they may be eligible for public health programs, including certain immunizations, emergency Medicaid, and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).

With the proposed HHS rule, DACA recipients will be able to apply for coverage through the Health Insurance Marketplace, potentially qualifying for financial assistance based on income, and through their state Medicaid agency.

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