A federal court has halted the Biden administration’s efforts to extend Affordable Care Act (ACA) coverage to DACA recipients, dealing a significant setback to healthcare access for hundreds of thousands of Dreamers across the United States.
On December 9, a federal judge sided with Kansas and 18 other states, effectively blocking the implementation of a Biden administration rule that would have allowed DACA recipients to access the ACA marketplace and receive financial assistance for healthcare coverage.
Background on the Rule
In May 2024, the Centers for Medicare and Medicaid Services (CMS) had finalized a rule that would have:
- Allowed active DACA recipients to enroll in qualified health plans through the ACA marketplace
- Provided access to basic health plans
- Made financial assistance available for coverage.
This rule was intended to address a long-standing gap in healthcare coverage for DACA recipients, who have historically been considered not “lawfully present” for healthcare law purposes, leaving many without access to affordable coverage options.
The Court’s Decision
U.S. District Judge Daniel M. Traynor’s ruling on Monday centered on the interpretation of CMS’s authority under the ACA. In his decision, he stated that while CMS has the authority to verify an individual’s lawful status, it cannot “circumvent congressional authority and redefine the term ‘lawfully present.'”
Impact and Reactions
Kansas Attorney General Kris Kobach (R), who led the opposition to the final rule, praised the court’s decision: “This decision is a big win for the rule of law. Congress never intended that illegal aliens should receive Obamacare benefits.”
When asked about the ruling, a CMS spokesperson indicated that the agency is reviewing the court’s decision but declined to comment further on the ongoing litigation.
What This Means for DACA Recipients
This ruling creates continued uncertainty for DACA recipients seeking healthcare coverage through the ACA marketplace. For now, the previous restrictions remain in place, meaning DACA recipients cannot:
- Purchase health insurance through the ACA marketplace
- Access federal subsidies for healthcare coverage
- Enroll in basic health plans under the ACA
The case highlights the ongoing challenges faced by DACA recipients and underscores how immigration status impacts access to healthcare in the United States.
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