CMS Health Care for DACA Recipients


On Apr. 24, CMS reported HHS issued proposal to expand coverage.


  • HHS via CMS issued notice of proposed rulemaking (NPRM) to expand access to health care by reducing barriers for Deferred action for childhood arrivals (DACA) recipients.
  • Follows White House announcement of plan to expand health care to DACA, #169436.
  • If approved, would apply to the health insurance marketplaces, the Basic Health Program, and some Medicaid and Children’s health insurance programs (CHIP).
  • Proposed Rulemaking
  • Would remove current exclusion that treats DACA recipients differently from other individuals with deferred action who would otherwise be eligible for coverage.
  • Amend definition of lawfully present re DACA recipients for purposes of Medicaid, CHIP.
  • Would extend Medicaid and CHIP coverage to children and pregnant women in states that have elected CHIPRA 214 option for children and/or pregnant individuals.
  • Also, the Basic Health Program and Affordable care act (ACA) marketplace coverage.
  • Technical changes to the definition of lawfully present would benefit consumers by enabling CMS and states to administer their programs more efficiently for noncitizens.
  • Recipients would need to meet all other eligibility requirements to qualify for coverage.
  • Additionally, recipients would be eligible for financial assistance through marketplace.
  • Such as advance payments of the premium tax credit and cost-sharing reductions.
  • Effectiveness
  • NPRM has a proposed effective date for all proposed provisions of Nov. 1, 2023.
  • Recipients would qualify for a special enrollment period to select a qualified health plan through a marketplace during the 60 days following the effective date of the final rule.
  • Consultation
  • To be assured consideration, comments must be received by Jun. 23, 2023.
  • Jun. 2023 CT AG Coalition Comment Letter
  • On Jun. 26, 2023, CT AG reported coalition of 19 States issued a comment letter supporting new proposed rule to expand Medicaid and ACA eligibility for Dreamers.
  • Coalition urged Department to finalize regulations expanding access to DACA recipients
  • Rule not only valid exercise of regulatory authority, would also increase health and wellbeing among vulnerable population, allow recipients to better support themselves.
  • May 3, 2024 CMS Final Rule
  • On May 3, 2024, CMS reported final rule expanding health care for DACA recipients.
  • Also published related fact sheet on rule that ensures health coverage to uninsured.
  • On same day, White House issued fact sheet, President and Vice President statements.
  • Final rule amends 42 CFR 435, 42 CFR 457, 42 CFR 600, 45 CFR 152 and 45 CFR 155.
  • Modifies definition of lawfully present for DACA recipients to be eligible for enrollment in qualified health plan through the Marketplace and or through basic health program.
  • May also qualify for advance payments of the premium tax credit and cost-sharing reductions to reduce the cost of Marketplace coverage, depending on income level.
  • ACA recipients and other newly eligible individuals will have special enrollment period to select Marketplace health plan during 60 days following the rule’s effective date.
  • Also updates the definition of qualified noncitizen for Medicaid and CHIP programs.
  • All provisions of the DACA health care final rule will be effective on Nov. 1, 2024.
  • May 8, 2024 CMS Fed Reg Final Rule
  • On May 8, 2024, CMS published final rule in federal register, effective Nov. 1, 2024.
  • CMS is finalizing the Exchange and BHP policies as discussed in the associated sections of this final rule, and not finalizing the Medicaid and CHIP proposals at this time.
  • CMS not finalizing lawfully present or lawfully residing definition for Medicaid, CHIP.

Regulators CMS; CT AG; HHS
Entity Types CNSM; Ins
Reference CMS: 89 FR 39392, 5/8/2024; PR, Info, RF CMS-9894-F, 5/3/2024; 88 FR 25313, 4/26/2023; PR, Info, 4/24/2023; 0938-AV23; White House: Sp, Info, 5/3/2024; CT AG: PR, 6/26/2023; Lt, 6/23/2023; ACA; Citation: *42 CFR* 435, 457, 600; *45 CFR* 152, 155;
Functions Compliance; Financial; Legal; Market Conduct; Product Administration; Tax
Countries United States of America
Category
State
Products Insurance; Insurance-Health
Regions Am
Rule Type Final
Rule Date 4/24/2023
Effective Date 11/1/2024
Rule Id 170780
Linked to Rule :169436
Reg. Last Update 5/8/2024
Report Section US Insurance

Last substantive update on 05/11/2024