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Updated August 6, 2025 — Across the U.S., including California, New Jersey, Oregon, and Minnesota, DACA recipients are set to lose their Affordable Care Act (ACA) or Basic Health Program (BHP) coverage starting August 25, 2025, with most state marketplaces terminating plans by August 31.
What Changed?
In June 2025, the Centers for Medicare and Medicaid Services (CMS) finalized a rule reversing the 2024 Biden-era policy that classified DACA recipients as “lawfully present.” The update removes them from eligibility for ACA subsidies and marketplace enrollment.
Covered California has confirmed that coverage for approximately 2,300 DACA beneficiaries will end on August 31, 2025. Similar terminations will happen in other states, affecting roughly 11,000 people nationwide.
Who Is Affected?
– Undocumented immigrants granted Deferred Action for Childhood Arrivals (DACA) status.
– Primarily those in California (≈2,300), New Jersey (≈500), along with Oregon and Minnesota (≈1,000 across states).
Why the Change?
CMS states the rule restructuring aims to stabilize the risk pool, lower premiums, and reduce improper enrollments. The repeal of DACA-related eligibility is projected to save taxpayers around $12 billion annually and reduce ACA marketplace premiums by approximately 5%.
Consequences for DACA Recipients
– Lost coverage through ACA marketplaces or BHP plans.
– No federal subsidies for private insurance—affordable marketplace plans will no longer be available.
– Those who prepaid may be eligible for premium refunds.
Alternative Coverage Options
– Medi-Cal (California’s Medicaid) for those whose income qualifies.
– Employer-sponsored insurance for employed individuals with access.
– Private full-price health plans (without subsidies).
– Emergency or sliding-scale care through community clinics.
Responses & Reactions
Covered California’s Executive Director Jessica Altman calls the rule “deeply unfair” to tax-paying individuals who trusted their continued eligibility. Immigrant rights advocates are mobilizing to assist affected individuals with resources, legal guidance, and connecting them to alternate health plans.
What Recipients Should Do Now
- Watch for termination notices—covered individuals will receive alerts, typically a few weeks before the cutoff date.
2. Explore Medi-Cal eligibility if your income qualifies.
3. Check employer-based insurance options if available.
4. Compare private health plans (at full cost) if necessary.
5. Contact legal aid or community health clinics for support navigating alternatives.
Why It Matters NOW
This rule change reverses a short-lived eligibility window that began in late 2024, offering marketplace access to DACA recipients temporarily. Many relied on the coverage through 2025, only to have it abruptly rescinded. The timing leaves many without insurance just ahead of peak enrollment season. Ensure you act promptly to avoid coverage gaps and evaluate the most cost-effective alternative plans before the August 25–31 deadlines.