What DACA Recipients Need to Know About the New Marketplace Rule

We are truly heartbroken.

It took years of advocacy and effort to finally allow DACA recipients the opportunity to qualify for subsidized health insurance through the Marketplace. For many, this was the first time affordable, quality coverage was within reach. Unfortunately, that progress is being rolled back.

As part of the 2025 Marketplace Integrity and Affordability Final Rule, DACA recipients will no longer be considered “lawfully present” for the purposes of qualifying for Marketplace health insurance. This change is scheduled to take effect for the 2026 plan year. The rule is not finalized, but looks pretty certain that this change will be included.

What This Means for You in 2025

👉 If you’re a DACA recipient currently enrolled in a Marketplace plan, your coverage will NOT change this year. You are already approved, and your plan and subsidies remain active for the rest of 2025. You do not need to take any immediate action.

This gives us time to prepare.

What Are Your Options for 2026?

If the rule goes into effect as scheduled, DACA recipients will no longer qualify for Marketplace subsidies starting in 2026. That doesn’t mean you’ll be left without insurance—but we may need to get creative. Here are a few potential options to explore:

• Private individual insurance (full-price, without subsidies)

• Joining a parent’s employer plan (if you’re under 26 and eligible)

• Finding a job that offers health benefits

• Purchasing a plan directly through a carrier

• Using direct primary care with a catastrophic plan for basic care and major emergencies

• Short-term health plans (depending on your health needs and availability in your state)

We’re here to talk through every scenario and help you weigh the pros and cons of each option.

We’re Here for You

This change is not fair—and it’s not what we hoped for. But you won’t have to navigate it alone. At Utah Avenue Insurance, we care deeply about our DACA clients and will continue to support you every step of the way.

📅 We’ll begin reaching out later this year to schedule appointments and explore new coverage options for 2026.

If you have questions now or get a letter from the Marketplace you don’t understand, call us. We’re here to help.

🛡️ Better coverage starts here—even when the rules change.