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CMS Policy Strips ACA Coverage From DACA Recipients Starting August 31

Covered California is notifying 2,300 Dreamers that their ACA plans will expire at the end of August.

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Overview

  • The Centers for Medicare and Medicaid Services reclassified DACA recipients as not lawfully present in June, disqualifying them from ACA marketplace coverage from August 31, 2025.
  • Roughly 2,300 enrolled Dreamers in California must seek employer‐sponsored plans, qualify for Medi-Cal, or face losing health insurance altogether.
  • CMS said the reversal aims to stabilize risk pools, reduce improper enrollments and help lower premiums.
  • Experts warn that removing younger, healthier enrollees will probably push up premiums for all ACA participants.
  • Advocates caution that further benefit cuts for refugees, asylees and humanitarian parolees are set to take effect in 2027.