As DACA recipients lose federal health benefits, Washington state offers immigrants an alternative

Starting this week, immigrants in the U.S. under the Deferred Action for Childhood Arrivals (DACA) program will no longer qualify for federal health insurance. But Washington is one of few states where DACA recipients will be able to keep their government health insurance — with some caveats.

In Washington, hundreds of DACA recipients, also known as "Dreamers," will still be able to participate in the state’s health exchange. But they'll lose out on about $350 per month of additional federal benefits, according to the state's health benefits exchange. These benefits are federal tax credits and cost-sharing subsidies from the federal government that DACA recipients pay into with jobs they get with work authorization.

DACA first started as a program for children without legal status, so that they were protected from removal proceedings while they attended and completed high school or enrolled in the military when it was briefly allowed. They also received work authorization through the program as they got older. Many of those DACA recipients are now adults with U.S. citizen children of their own.

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In 2024, the Biden administration changed the definition of "lawfully present" for Affordable Care Act eligibility so that DACA recipients were allowed to participate in state and federal health exchanges. But the Trump administration announced it was reversing that rule change in June.

Rachelle Alongi with the Washington Health Care Authority warns there could be more fallout as a result.

"Some people may forego purchasing health care insurance or skip care altogether because of high health care costs," Alongi said.

"We could also see an increase in emergency room visits because of people foregoing preventive treatment," she added. "These circumstances can strain the health care system and lead to challenges in providing timely, high-quality care and access to services."

Washington DACA recipients who are currently in the state’s health exchange will still be able to keep their health insurance, Alongi said, and they're being notified of what will change for them.

For DACA recipients who need health insurance but can’t afford it, the state has already expanded its own health insurance program to provide Medicaid-like benefits to people without legal status who are considered low income.

That means those DACA recipients could get health insurance through the state. But there's a catch: The program has a waitlist of people wanting to apply.

The full impacts of the loss of federal benefits for DACA recipients will be felt in October, according to the Washington Health Benefits Exchange.