Approximately 34,000 low-income legal immigrants in Massachusetts will lose their government-subsidized health insurance. This is a direct result of changes to federal law signed by President Trump last month.
The state will end a specific health plan category called “Type 1.” These plans are offered through the Massachusetts Health Connector, the state’s health insurance marketplace.
The Type 1 plan was designed for a specific group. It covers legal immigrants who earn little enough to qualify for Medicaid. However, federal law requires them to wait five years in the U.S. before they can get it.
Everyone losing this subsidy reported an income below the federal poverty line this year. The group includes low-wage workers, part-time employees, stay-at-home parents, international students, and Green Card holders.
The federal government currently pays for almost all of these plans. The new federal budget law, passed by the Republican-controlled Congress, stops these subsidies. It says this group of immigrants no longer qualifies for help under the Affordable Care Act
The state’s Health Connector has started sending notices to affected residents. Individual letters explaining the change will arrive by October.
The timing is significant. The cuts happen on the 20th anniversary of Massachusetts’ landmark health coverage law. That law aimed to provide insurance for almost all state residents.
Audrey Morse Gasteier is the Health Connector’s executive director. She called the timing “painful.”
“Rolling back those promises and principles… is really heartbreaking,” Gasteier said. She argued that helping all residents stay healthy benefits everyone.
She also noted that only 41% of people in these plans filed a medical claim last year. When fewer people use their insurance, it helps keep prices stable for everyone.
Some affected residents might qualify for other insurance plans. International students will likely have to buy their own insurance. A change in family or income status could also make people eligible for other programs.
The federal government will save about $250 million a year by cutting these subsidies. It is unclear if state leaders will propose using Massachusetts taxpayer money to replace the lost funds.
Governor Maura Healey released a statement. “While no state has the resources to make up for these devastating cuts, we are evaluating every option,” she said.
Advocates warn the cuts will hurt people and strain the healthcare system.
Vicky Pulos is a health law attorney. She said, “We’re looking at 34,000 people… having no recourse when they’re sick or injured, except our overcrowded emergency rooms.”
When uninsured people cannot pay, costs often shift to taxpayers. Hospitals may also raise prices to cover the losses. This increases the overall cost of healthcare.
State officials estimate Massachusetts will lose $3.5 billion a year from all the health cuts in the new federal law. They believe up to 300,000 residents could eventually lose their health coverage.
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