An action by the Biden administration that allows Deferred Action for Childhood Arrivals (DACA) recipients access to Obamacare, as found in a study by the Congressional Budget Office (CBO), might potentially result in billions added to the national deficit.
The CBO, after a comprehensive review, has come up with an estimate that approximately 110,000 unauthorized immigrants, who are part of DACA, may opt for Obamacare coverage, thereby increasing the federal deficit by nearly $7 billion over a timeframe of 2025 to 2034.
This estimation was brought forth following President Biden’s recent declaration that he intends to modify the regulatory structure of Obamacare, thus making DACA recipients eligible for its benefits for the first time.
The report by the CBO, along with the Joint Committee on Taxation, indicates that a yearly average of about 110,000 DACA recipients will likely enroll for marketplace coverage due to this change. As a result, it’s anticipated the deficit will rise by a projected $7 billion over the decade from 2025 to 2034.
While there may be some offset to additional marketplace enrollment costs in terms of decreased emergency Medicaid spending, this won’t fully mitigate against the higher costs, as per the agencies’ estimates.
The American Rescue Plan Act, ratified in 2021 and later extended up to 2025, has indeed lowered the maximum payment eligible candidates need to shell out towards premiums for health coverage procured via Obamacare, as the report elucidated.
The CBO forecast also suggests that if the tax credits under this Act are institutionalized, the count of DACA recipients enrolling under the subsidized coverage could swell by 140,000, driving the total costs of this rule change to around $9 billion.
The origin of this report lies in the query from Republican congressmen, Jodey Arrington of Texas and Jason Smith of Missouri, who hold notable positions in the Budget Committee and the Ways and Means Committee, respectively.
Earlier in May, President Biden confirmed his intent to grant Obamacare enrollment rights to those unauthorized immigrants who got relief from deportation under the DACA policy. These individuals, often labeled as ‘Dreamers’, will hence have the opportunity to benefit from this healthcare program.
Under the current legal purview, those without lawful presence in the States are not entitled to Obamacare subsidies. However, the Biden administration plans to overcome this barrier by altering the definition of ‘lawfully present’.
As indicated by the Centers for Medicare and Medicaid Services, Dreamers will officially have access to enroll in the Obamacare marketplace starting from November 1st, effectively incurring costs.
In a recent executive order announcement, President Biden has extended his amnesty to more than half a million unauthorized immigrants residing in the country and married to American citizens.
Critics see this gesture as another incentive causing boosts in illegal immigration, adding strain to an already complex border crisis.