Covered California Coverage Ending for DACA Recipients

Top 3 Key Takeaways from this article:

1. DACA Recipients Will Lose Covered California Marketplace Plans

Starting August 31, 2025, DACA recipients will no longer be considered “lawfully present” for ACA marketplace eligibility. As a result, those enrolled through Covered California will lose access to these health insurance plans.

2. Only a Small Group Is Directly Impacted

Although California has over 164,000 DACA recipients, most are covered through jobs, family plans, or Medi-Cal and will not be affected. The change primarily impacts about 2,300 individuals currently using Covered California marketplace coverage.

3. Alternative Coverage Options Are Essential

Those losing coverage must prepare by exploring alternatives such as employer insurance, family coverage, Medi-Cal (if eligible), private plans without subsidies, or local community health centers. Early planning is critical to avoid gaps in care.

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On June 20, 2025, the Centers for Medicare & Medicaid Services issued new standards for the Health Insurance Marketplaces that provide access for millions to Affordable Care Act (ACA) health coverage, that among other changes, remove Deferred Action for Childhood Arrivals (DACA) recipients from the definition of “lawfully present” for eligibility. This means that on August 31, 2025, Covered California will stop offering coverage to residents in the DACA program.

The new rules from the Trump administration not only block DACA recipients from obtaining insurance through the state marketplaces but also disqualify them from federal funding to help pay for health coverage. DACA recipients who currently get their health insurance through Covered California—estimated to be approximately 2,300 people statewide—will lose their existing coverage by the end of August. Here’s what to know if you (or someone you know) is a DACA recipient and may be affected.

Who Is Losing Coverage?

While over 164,000 DACA recipients live in California, it is anticipated that only a small fraction of them will lose coverage as a result of the federal administration’s efforts to limit what they term “improper enrollments.” Many obtain health insurance from their employers, through their families, or from Medi-Cal (California’s Medicaid program). Federal changes do not affect these types of health coverage.

However, if you purchased an ACA plan by going to the Covered California website or working with an agency or community organization to enroll in a Covered California plan, and you are a DACA recipient, you are unfortunately affected. If you have not been notified already, you will be receiving an email, letter, or call from a Covered California representative to alert you to the end of your coverage. If you are not sure how you found your plan, you can log into coveredca.com or call at 800-300-1506 to check if your health insurance is affected.

If I’m Losing Health Insurance, What Do I Do?

If you are losing insurance due to this change, it’s important to look out for your health as you look for alternative coverage. Start by communicating with your current health care providers, including your primary care physician and any specialists. If a change in insurance necessitates a change in provider, you will want to know how to access your medical information after any switch. If you have a chronic condition, you should also make a plan with your physician for how to keep receiving the care you need after August 31, whether you transition directly to a new health insurance plan or not.

Community clinics that serve the uninsured can be a helpful resource if you end up temporarily uninsured. While they tend to be limited in their services, they can help keep minor medical issues from becoming major problems. Many offer basic care for free or on a sliding scale to facilitate access.

In the meantime, other options for obtaining a new health insurance plan include:

Finding Solutions for the Loss of Health Insurance

At Medical Insurance Today, we believe that everybody deserves an affordable health insurance plan. If you’ve lost insurance coverage for any reason—federal rule changes, life changes, or job loss—we can help you find the right plan at the lowest possible cost. Our agents and provide plain language explanations of your options in English and Spanish to help you make an informed choice. To get started, contact us here today.

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