Red state AGs sue Biden administration over ObamaCare coverage for Dreamers

A coalition of 15 red state attorneys general are suing the Biden administration over its plan to expand Affordable Care Act (ACA) health coverage to immigrants brought to the U.S. illegally as children. 

The states, led by Kansas Attorney General Kris Kobach (R), want to stop the administration’s plan from taking effect Nov. 1.  

Under the rule, active recipients of Deferred Action for Childhood Arrivals (DACA) will be eligible to enroll in a taxpayer-subsidized health plan under the ACA. The administration estimated the policy would lead to 100,000 newly eligible DACA recipients enrolling in either a marketplace plan or a basic health program. 

Kobach was joined by AGs from Alabama, Idaho, Indiana, Iowa, Missouri, Montana, New Hampshire, North Dakota, Ohio, South Carolina, South Dakota, Tennessee and Virginia. The lawsuit was filed in federal court in North Dakota. 

"Illegal aliens shouldn't get a free pass into our country. They shouldn't receive taxpayer benefits when they arrive, and the Biden-Harris administration shouldn't get a free pass to violate federal law. That's why I am leading a multistate lawsuit to stop this illegal regulation from going into effect," Kobach said in a statement. 

DACA recipients had previously been excluded from ObamaCare benefits, though other foreign nationals in deferred action programs were not.  

Under previous Centers for Medicare and Medicaid Services (CMS) rules, DACA recipients were not “lawfully present” in terms of the health care law. That’s led many DACA recipients, particularly those without employer-provided insurance or the means to self-finance health insurance, to fall out of coverage. 

The lawsuit argues the administration directly contradicted that “lawfully present” language in the law.  

The lawsuit also said the new policy violates a 1996 welfare reform law that limits eligibility for federal public benefits to certain “qualified aliens.” DACA recipients weren’t included in that definition. 

The lawsuit says being eligible for ACA coverage will likely create an incentive for undocumented immigrants to remain in the U.S. instead of returning to their countries of origin, creating a financial burden on the state and public school systems.  

The lawsuit urged the court to postpone the effective date of the rule pending completion of the case. It also sought to vacate the rule as “both contrary to law and unreasonable, arbitrary and capricious.” 

When the final rule was announced in May, administration health officials said allowing Dreamers to enroll in ObamaCare plans would help expand affordable health coverage and reduce the number of uninsured people. 

“Dreamers as DACA recipients are currently three times more likely to be uninsured than the general U.S. population, and individuals without health insurance — I think we all know this — are less likely to receive preventative or routine health screenings,” Health and Human Services Secretary Xavier Becerra said. 

“They delay necessary medical care, and they incur higher costs and deaths when they do finally seek care. So making Dreamers eligible to enroll in coverage will improve their health and well-being and strengthen the health and well-being of our nation and our economy.”