Covered California is communicating with health insurance agents that more individuals and families will lose health insurance subsidies in 2027. Specifically, the One Big Beautiful Bill passed by congress in 2025 will deny certain working individuals and families with a lawful present status from receiving the health insurance subsidy through Covered California.
Tax Paying Immigrants Will Lose Covered California Subsidy in 2027
Because of the One Big Beautiful Bill, DACA recipients lost eligibility for the Premium Tax Credit health insurance subsidy in August of 2025. Covered California has been messaging that more people will lose the subsidy in 2027.
Covered California sent an email to insurance agents regarding the loss of the subsidy and potential disruption to individuals and families.
Other lawfully present immigrants, including many consumers with asylum or pending asylum status, refugee status, survivor-based protections, Temporary Protected Status, work visas, student visas, and other temporary or humanitarian statuses, may still enroll in Covered California coverage but will no longer qualify for federal financial help such as APTC (Advance Premium Tax Credit subsidies) and CSR (cost-sharing reduction silver plans).
Green Card holders will still be eligible for the health insurance subsidies.
Moderate Income People on Work Visas will lose health insurance subsidy
The U. S. Department of Health and Human Services has not provided a definitive list of affected lawfully present immigrant status. There are 22 different categories of work visas that could be impacted in addition to asylees, refugees, and young adults on student visas.
Some of the professions the work visa, asylee, and refugee exclusion will potentially affect will be nurses, agricultural workers, scientists, educators, composers, service and maintenance providers, religious workers, and construction workers.
The Department of Health and Human Services is finalizing the list of lawfully present immigrants they want to exclude from receiving the ACA subsidies for health insurance. The rules will be finalized in 2026 and working, tax paying immigrants will lose access to affordable health insurance in 2027.
I was shocked by the changes to the eligibility for the subsidies for the lawfully present immigrants. I have several clients who fall into some of these categories that will no longer be eligible for the health insurance subsidies.
Refugees, Asylees work, earn income, pay taxes
First reality check. You are only eligible for the Affordable Care Act Premium Tax Credit health insurance subsidies through Covered California if you have taxable income. All my immigrant clients work, they earn an income, they pay taxes. They are virtually indistinguishable from a native born, naturalized citizen or Green Card holder in the United States.
Second reality check. The only individual and family plans available to residents of California are expensive. Many lawfully present immigrants and their families have incomes that make them eligible for the health insurance subsidy. In other words, their incomes are below 400 percent of the federal poverty level for their household size, which in 2026, makes them eligible for the health insurance subsidies.
For these individuals and families, they have moderate to low TAXABLE income. We are not talking about wealth entertainers who have a residency in Las Vegas. These working individuals who might be employed with Uber or Lyft, educators, composers, nurses, and construction workers.
If you pay federal taxes, you should get the ACA subsidies
Final reality check. These people are paying local, state, and federal taxes. They are working and contributing to their communities. They have made the responsible decision to purchase health insurance.
If an individual is working, paying taxes, and has an income low enough to qualify for the health insurance subsidies, they should be allowed to participate in the ACA program. These folks are our neighbors and are no different from the rest of us. They are trying to be responsible residents by enrolling in health insurance so some unfortunate accident does not make them a burden to the state.
YouTube video on loss of subsidy for lawfully present immigrants.
