HHS releases proposed rule to expand Medicaid, ACA access to DACA recipients

HHS unveiled its proposed rule that, if finalized, would expand healthcare coverage access to an estimated 129,000 previously uninsured Deferred Action for Childhood Arrivals program recipients.

The proposed change applies to ACA marketplaces, the Basic Health Program and some Medicaid and Children's Health Insurance Programs, according to an April 24 HHS news release. 

The proposal comes less than two weeks after President Joe Biden announced plans to expand Medicaid and ACA access to DACA recipients 

Four things to know:

1. The proposed rule, if finalized, would remove the current exclusion that treats DACA recipients differently from other individuals with deferred action who would otherwise be eligible for coverage under select CMS programs. 

2. The proposed rule would amend the definition of “lawfully present” to include DACA recipients for the purposes of Medicaid and CHIP. DACA recipients would need to meet all other eligibility requirements to qualify for coverage. DACA recipients would also be eligible for financial assistance through the marketplace, such as advance payments of the premium tax credit and cost-sharing reductions, if they meet all other eligibility requirements.

3. If the rule is finalized as proposed, DACA 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. 

4. The rule has a proposed effective date of Nov. 1 for all provisions. CMS is requesting comment from the public on the proposed regulations and specifically on the feasibility of this date and whether to consider a different date. 

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