Overview

• CMS announced in June that DACA recipients will be reclassified as not “lawfully present,” terminating their ACA marketplace eligibility on August 31, 2025.
• Approximately 2,300 California DACA enrollees who joined ACA exchanges since last November will lose their health coverage at the end of August.
• Nonprofits such as SIREN caution that affected Dreamers may confront coverage gaps or unaffordable out-of-pocket costs if replacement plans fall through.
• Federal officials contend the reversal will stabilize the insurance risk pool and lower premiums, but experts at UCLA warn removing young enrollees could push premiums higher for all participants.
• Further federal budget measures scheduled for 2027 will cut subsidies for refugees, asylees and humanitarian parolees, extending benefit rollbacks beyond DACA recipients.