The open enrollment season for the Affordable Care Act is currently underway, but there are challenges that are affecting enrollment numbers. Sign-ups through healthcare.gov, the federal marketplace serving 31 states, are significantly lower than last year. Early December saw just over 730,000 new enrollments, compared to 1.5 million at the same time last year.
To give consumers more time to enroll, the Centers for Medicare and Medicaid Services extended the deadline to Wednesday for coverage starting on January 1. Open enrollment itself ends in most states on January 15, with coverage beginning on February 1.
However, there is a legal challenge affecting enrollment. A federal judge in North Dakota ruled in favor of 19 states that challenged a rule allowing “dreamers” to enroll in ACA coverage for the first time. The ruling effectively barred DACA recipients in the 19 states from enrolling or receiving subsidies for ACA plans. The Biden administration is seeking to put a hold on this order, arguing that it would be disruptive and costly for the federal government to implement.
The original case was filed in August and is being heard by District Judge Daniel Traynor. The federal government estimated that about 100,000 uninsured DACA recipients might sign up for coverage in 2025. As of now, 2,700 have enrolled through the federal marketplace, with an unknown number in states running their own marketplaces.
The Biden administration rule, finalized in May, allows DACA recipients to be considered “lawfully present” for enrolling in ACA plans. The states challenging the rule argue that it will cause administrative burdens and encourage more unauthorized individuals to stay in the US.
The legal battle is ongoing, with the U.S. Court of Appeals for the 8th Circuit granting a temporary stay of the order. A final decision is expected soon, which could extend the stay while the appeal is heard. The outcome will have significant implications for DACA recipients seeking health coverage through the ACA.
