Many undocumented immigrants do not have health coverage, but the Affordable Care Act (ACA) offers a number of solutions to help them obtain coverage.
Immigrants who have been in the US for five or fewer years can take advantage of premium tax credits and cost sharing subsidies in the exchanges if they meet ACA’s essential benefits standards. This should result in significant national reductions in uninsurance among lawfully present noncitizens.
Subsidies
In addition to federal subsidies for premiums and cost sharing that vary based on income, low-income lawfully present immigrants may qualify for tax credits under the ACA. They can also enroll in plans through exchanges and receive state-based subsidies for out-of-pocket costs like deductibles or copayments.
Immigrants who qualify for subsidized coverage through the exchanges will likely have more comprehensive, affordable insurance than if they had to pay full price. Unfortunately, these subsidies may not be enough to fully cover out-of-pocket expenses, leaving those in lower income brackets without adequate access.
Many states are taking steps to expand Medicaid and CHIP coverage for immigrant children and pregnant women. Furthermore, many of these jurisdictions are seeking federal matching funds in order to pay for emergency healthcare services for undocumented individuals living in families with low incomes.
Short-term policies
Short-term policies are available to immigrants who require temporary coverage but lack access to employer-sponsored health insurance or an individual plan through the exchange. Typically, these plans offer lower premiums than ACA-compliant options and may be suitable for healthy applicants who cannot access coverage through the exchange due to their immigration status.
Lawfully residing immigrants who have been in the United States for less than five years may not qualify for Medicaid or CHIP benefits. They can, however, enroll in plans through their state exchange and receive premium subsidies if they meet certain income and residency criteria.
This rule change could potentially impact immigrant families, particularly those dependent on public assistance. To build trust and reduce fears about accessing programs and services, it will take time and sustained community-led initiatives.
Employer-sponsored plans
Employer-sponsored plans are currently the primary source of health coverage for most Americans. They provide coverage to employees and their dependents, often with tax breaks included.
Under the Affordable Care Act (ACA), policies have been extended to individuals under 26 and those unemployed or without coverage through an employer’s plan. Unfortunately, these plans face increasing premiums, deductibles, and out-of-pocket expenses.
Lawfully present immigrants have the option to purchase private health insurance on the individual market, and are also eligible for premium subsidies that aim to make coverage affordable for them.
Private plans
The Affordable Care Act (ACA) established marketplaces where people can purchase health coverage. These sites provide tax credits and cost-sharing reductions to make premium plans more accessible.
The Affordable Care Act (ACA) also offers private plans, which are not federal or state-sponsored. These options may be more costly than government-sponsored options like Medicare or Medicaid but may provide more comprehensive coverage.
Lawfully present immigrants have the option to enroll in a plan through the exchanges and receive premium subsidies. Unfortunately, many undocumented individuals are ineligible for these benefits.
Those eligible for premium subsidies in the exchanges can usually find a plan that complies with the Affordable Care Act and offers comprehensive coverage. Conversely, those without access to subsidies may want to consider taking out a short-term policy which may be less expensive than an ACA-compliant option but still has limitations on preexisting conditions and other coverage gaps.
Exchanges
Health insurance exchanges are a new option made available under Obamacare for both immigrants and citizens alike. These marketplaces enable people to compare plans and receive assistance in purchasing coverage.
Lawfully present immigrants can enroll in plans on the exchange and receive premium subsidies based on income, regardless of how long they have lived here. These subsidies are available for up to five years after arrival in America.
The Affordable Care Act (ACA) calls for premium subsidies to be made available to immigrants who do not have Medicaid or other coverage, though this may not be the case in every state.
Unfortunately, in many cases low-income immigrants have not been adequately informed of this rule by exchange staff or brokers. If you don’t receive assistance from your enrollment assistant, calling the exchange is a wise idea to inquire further about its application.
