Republican Attorneys General Challenge DACA Health Insurance Subsidization Rule
TL/DR –
Republican attorneys general from Kansas, North Dakota, and South Dakota have argued against a federal rule allowing some undocumented immigrants to receive subsidized health insurance. The rule would permit immigrants protected under the Deferred Action for Childhood Arrivals (DACA) program to access healthcare plans under the Affordable Care Act. The attorneys claim the rule provides incentives for DACA recipients to stay longer in the U.S., burdening state resources, and that the Department of Health and Human Services has no basis to change the definition of eligible immigrants.
Republican AGs Contest Federal Rule on DACA Recipients’ Healthcare Access
Three Republican attorneys general put forth their argument in a North Dakota federal courtroom to halt or delay a federal rule providing subsidized health insurance to certain undocumented immigrants. The attorneys general of Kansas, North Dakota, and South Dakota represented 19 states in the hearing to challenge the rule that permits DACA-protected immigrants access to Affordable Care Act healthcare plans.
The controversial DACA program temporarily prevents the deportation of undocumented immigrants who entered the U.S. as children. However, healthcare benefits under the Affordable Care Act are typically limited to U.S. citizens, nationals or immigrants “lawfully present” in the country. Previously, DACA recipients were not specifically identified as “lawfully present” in the ACA’s administrative regulation.
The federal agency adopted a rule that expanded the “lawfully present” designation to include DACA participants and certain undocumented immigrants with employment authorization documents. This move sparked a lawsuit from state governments in August on the grounds that the Department of Health and Human Services lacked the statutory basis for amending the definition and that the new rule would impose additional financial burdens on states.
The states’ complaint argues that extending benefits to DACA recipients would incentivize them to stay in the U.S., causing states to spend more on education, healthcare, law enforcement, public assistance, and other resources. They requested U.S. District Court Judge Daniel Traynor to halt the rule’s enforcement or delay its effective date before the ACA open enrollment begins on November 1.
At the hearing, Kansas Attorney General Kris Kobach described the rule as an attempt by the federal government to redefine national immigration policy. If the rule remains, plaintiffs estimate that approximately 200,000 people would become eligible for federally subsidized health insurance through the ACA.
The lawsuit is facing opposition from three DACA recipients and CASA Inc., an immigration advocacy group, who filed to intervene in the case and suggested moving the lawsuit to federal court in the District of Columbia.
According to the U.S. Citizenship and Immigration Service, as of June 30, 2024, North Dakota housed approximately 130 DACA recipients.
The U.S. Department of Health and Human Services argues that the rule change aligns with the ACA’s goals of reducing the number of uninsured people in the U.S. They also contend that the plaintiff states lack evidence to prove that the rule would increase their costs. However, Traynor pointed out that the language of the rule acknowledges a potential financial burden on certain states.
Traynor communicated that the case may be more appropriate for a district court in a state with its own ACA insurance marketplace, as these states could face direct harm under the rule. The 19 states involved in the case include Kansas, North Dakota, Alabama, Arkansas, Florida, Idaho, Indiana, Iowa, Kentucky, Missouri, Montana, Nebraska, New Hampshire, Ohio, South Carolina, South Dakota, Tennessee, Texas, and Virginia.
Finally, a Texas federal judge struck down the DACA program last year, ruling that the Department of Homeland Security exceeded its authority in its creation. This decision is currently under appeal.
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