Last Updated on August 7, 2025 by The HD Post Staff
CALIFORNIA – Due to federal rule changes, Deferred Action for Childhood Arrivals (DACA) recipients with Covered California plans will lose Affordable Care Act (ACA) coverage on August 31, 2025.
Covered California says the rule will affect more than 2,300 DACA recipients in California.
The decision comes from the Centers for Medicare and Medicaid Services (CMS), the federal agency overseeing ACA marketplaces. In June, CMS updated its rules to exclude DACA recipients from the definition of “lawfully present.”
The agency estimates that the rule will decrease individual health insurance premiums by an average of 5%.
“It is also projected to save taxpayers up to $12 billion in 2026 by combating the surge of improper enrollments in the Affordable Care Act (ACA) Exchanges, reining in wasteful federal spending…” said CMS.
Covered California says it is required to comply with this new rule.
“While we had hoped for a different outcome for DACA recipients, we must comply with federal law,” said Covered California Executive Director Jessica Altman.
Covered California urges DACA recipients to explore other options
Covered California said it is contacting affected individuals and will help them find coverage outside the marketplace.
It encourages all DACA recipients to explore coverage options and stay insured to avoid financial hardship.
Covered California says options for coverage may include:
- Checking Medi-Cal eligibility at CoveredCA.com or local county offices
- Buying a plan directly from an insurance company
- Exploring employer-based insurance through a job
Enrollees with questions should contact Covered California or seek help from legal aid or consumer assistance programs.
The California Department of Social Services’ Immigration Services Bureau maintains a list of nonprofit organizations that assist immigrants.
For more information and resources, visit the Immigration and California families webpage at https://www.ca.gov/immigration/
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