Access to Health Coverage Within the Marketplace Ended on August 25 for DACA Recipients
A new rule from the Centers for Medicare & Medicaid Services went into effect on August 25, 2025, and eliminated the recognition of DACA recipients as “lawfully present.”
The U.S. government informed the Eighth Circuit Court of Appeals that, as of August 25, 2025, a final rule would go into effect excluding Deferred Action for Childhood Arrivals (DACA) recipients from the definition of “lawfully present” under the Affordable Care Act (ACA). The measure reverses the policy issued in 2024 that allowed DACA recipients to access the Marketplaces created by the ACA and receive federal subsidies. With the new provision, those who have this temporary immigration protection will no longer be able to buy insurance in these markets or benefit from related federal support. The change comes in the context of the lawsuit filed by the state of Kansas and other plaintiffs against the federal government, which challenged the inclusion of DACA recipients in ACA coverage. Following the publication of the new rule, the Department of Justice (DOJ) noted that the case will become moot or “devoid of purpose” and that it will file a motion to dismiss it by September 8, 2025. This decision directly impacts migrant communities and health organizations, as thousands of people will be left without access to health coverage less than a year after they were declared eligible under the ACA’s definitions. |