DACA Recipients to Lose Pennie Health Insurance Coverage Later This Month
Due to a final rule issued by the Centers for Medicaid and Medicare Services (CMS) in June, immigrants in the Deferred Action for Childhood Arrivals (DACA) program will have their Marketplace health insurance terminated on August 31, 2025. DACA recipients who are enrolled in plans through Pennie, Pennsylvania’s Affordable Care Act Marketplace, will have their coverage stopped on that date. According to CMS, an estimated 10,000 DACA recipients nationwide will lose their health coverage as a result of this rule. As compared to states with larger DACA populations like New York, California, and Illinois, relatively few DACA recipients are enrolled in Pennie.
DACA is a U.S. immigration policy established by President Obama in June 2012. It was designed to protect certain undocumented immigrants who were brought to the United States as children.
In 2024, the Biden administration expanded Marketplace coverage to DACA recipients, allowing them to enroll in marketplace plans and qualify for premium subsidies and help with cost sharing starting November 1, 2024. However, due to shifting federal policy that expansion has now been reversed less than a year later.
DACA recipients now face the same coverage limitations that existed before November 2024. DACA recipients have alternative avenues for care and coverage, though they are limited. Employer-sponsored insurance remains the most viable option for those who work or have access to insurance through a working spouse or domestic partner. DACA recipients may be able to purchase a private health insurance plan outside of the Marketplace but will not receive subsidies or any other financial assistance to make the coverage more affordable. Federally qualified health centers (FQHCs or community health centers) may provide care regardless of insurance status, usually on a sliding fee scale. To find a local health center, visit the PA Association of Community Health Centers’ website and use their Find a Health Center tool.
Click here to learn more about other changes coming to Pennie marketplace coverage as a result of the final rule. As we continue analyzing the final rule, we will share more about the non-DACA impacts in future posts and newsletters.
