HHS Proposal Could Boost Health Insurance Coverage for DACA Recipients

The US Department of Health and Human Services (HHS) has released a proposal that would expand access to health insurance coverage for Deferred Action for Childhood Arrivals (DACA) recipients.

The notice of proposed rulemaking comes shortly after the Department announced plans to facilitate coverage access for this population through the Affordable Care Act marketplaces, the Children’s Health Insurance Program (CHIP), and Medicaid. Following a directive from the Biden Administration, HHS said it would release the proposed rule by the end of April.

If finalized, the proposal would amend the definition of “lawfully present” to include DACA recipients, also known as Dreamers, allowing them to enroll in public health insurance coverage.

Dreamers are individuals who arrived in the US as children and do not have lawful immigration status. DACA protects undocumented immigrants from deportation and provides recipients with a social security number, driver’s license, and work permits.

The proposal could help 129,000 previously uninsured DACA recipients receive healthcare coverage, according to HHS.

Additionally, the proposal would extend Medicaid and CHIP coverage to children and pregnant people in states that have elected to cover lawfully residing individuals under section 214 of the Children’s Health Insurance Program Reauthorization Act of 2009 (CHIPRA 214).

DACA recipients must meet all other eligibility requirements to qualify for coverage, the announcement noted.

Around 580,000 DACA recipients live and work in the US, but 34 percent do not have access to health insurance coverage.

“Young people who come to this country—in many cases, the only country they have ever known as home—work hard to build their lives here, and they should be able to keep themselves healthy,” CMS Administrator Chiquita Brooks-LaSure said in the press release. “The Biden-Harris Administration is committed to ensuring affordable, quality health care for all, and to providing DACA recipients the opportunities and support they need to succeed.”

The proposal would also allow Dreamers to be eligible for financial support, including advanced payments of premium tax credits and cost-sharing reductions.

If finalized, the provisions included in the rule would take effect on November 1, 2023. DACA recipients would qualify for a special enrollment period to select a qualified health plan through the marketplace during the 60 days after the effective date.

CMS has requested comments on the rule and asked stakeholders if the proposed effective date is feasible.

The proposed rule can be accessed here.