Judge blocks ACA rule extending health insurance to DACA recipients

On Tuesday, Alabama Attorney General Steve Marshall praised a federal court judge’s preliminary injunction preventing the enforcement of a new rule meant to provide insurance through the Affordable Care Act to immigrants in the Deferred Action for Childhood Arrivals program.

Kansas led the coalition arguing the case in October and was joined by attorneys general from Alabama, Arkansas, Idaho, Indiana, Iowa, Florida, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, South Carolina, South Dakota, Tennessee, Texas and Virginia.

U.S. District Court Judge Dan Traynor issued the ruling on Monday, siding with the coalition of Republican state attorneys general who argued that the rule violates federal law and would lead to higher state costs.

The coalition argued that a 1996 law generally bans undocumented immigrants from receiving federal benefits and that the Affordable Care Act requires individuals to be “lawfully present” in the U.S. to qualify for subsidized health insurance. The attorneys general argued that DACA recipients do not meet this requirement.

The judge’s order prohibits the U.S. Department of Health and Human Services from enforcing the rule in the 19 states involved in the lawsuit until the case is resolved. 

The dispute centers on whether DACA recipients should be considered “lawfully present” under ACA rules. The new HHS rule, which took effect on November 1, clarifies that DACA recipients and some other undocumented immigrants with certain work authorizations are eligible for ACA coverage.

The lawsuit claims that Congress did not intend for DACA recipients to have access to ACA health benefits and that the rule will incentivize undocumented immigrants to remain in the U.S. HHS argues that the rule aligns with the ACA’s goal of reducing the number of uninsured people.

Alabama Attorney General Steve Marshall said extending health insurance through the ACA to 3,460 DACA recipients would be costly for Alabamians. 

“Under no circumstances should American citizens be bankrolling Obamacare for illegal immigrants,” said Marshall. “Not only would subsidized healthcare be another incentive for illegal immigration, but the agency threatened to cut the funding States use to run the very exchanges required under the Affordable Care Act.”