Federal Policy Changes Impacting Health Coverage in Massachusetts
A new federal policy, stemming from President Trump’s significant legislation, is directing attention towards specific groups concerning public health insurance eligibility.
In Massachusetts, officials anticipate around 250,000 individuals may lose their health coverage due to a federal budget bill signed by Trump on July 4th.
Immigrants are among the first groups feeling the effects of these changes. Massachusetts Health Connectors have discussed these developments this month.
As of August 25th, there’s a shift in the federal stance regarding the registration for market coverage. DACA recipients, currently enrolled in the Health Connector, will see their coverage end on August 31st.
Approximately 5,000 DACA recipients reside in Massachusetts.
Looking ahead to January 1, 2026, the ConnectorCare plan will no longer support more than 34,000 legal immigrants in the state.
The ConnectorCare Plan Type 1 currently assists immigrants who haven’t qualified for MassHealth standards, which requires legal residency for five years.
To remain eligible for support, these individuals will need to meet higher income thresholds as their earnings increase. Additionally, updates in immigration status and household size may impact ongoing compensation.
Nearly all of the 34,000 individuals losing coverage under ConnectorCare Plan Type 1 will qualify only for emergency care through MassHealth Limited and community health centers supported by the state’s health safety net.
Yet, the Health Safety Net—a sort of state health care charity—is currently facing significant financial challenges.
For the 2023 fiscal year, the program reported a $107 million deficit. The Massachusetts Health Hospital Association estimates that losses could amount to $290 million by the conclusion of the 2025 budget year on September 30th.
Dale McHale, senior vice president of healthcare finance and policy at the Massachusetts Health and Hospital Association, emphasized that these coverage losses could destabilize vital health safety net programs, adversely affecting access for low-income and uninsured patients. He noted that hospitals remain dedicated to collaborating with state leaders amid these considerable reductions in federal health coverage.
In response to the new federal policy, Massachusetts has ended its extended registration period for low-income individuals, previously allowing those making under $22,590 annually to enroll in health insurance anytime throughout the year.
Audrey Morsegasteer, executive director of Health Connector, mentioned in a recent WBUR-FM interview that the federal government stands to save roughly $250 million annually by cutting subsidies for the lowest-income legal immigrants in the state.
Morsegasteer expressed concern, stating, “Massachusetts has spent the past two decades ensuring that all legally present residents have health coverage. It’s quite disappointing to see these commitments and principles being reversed.”
In a recent webinar, Jonathan Burks, vice president of economic health policy at the Center for Bipartisan Policy, projected that by 2034, the nation could see a decrease of 8 million Medicaid enrollments and a drop of about 2 million in health insurance exchange participation.
Burks noted that two-thirds of the anticipated $1.5 trillion in cuts would affect Medicaid.
He added, “Participation among non-citizens is now tightly restricted within Medicaid, Medicare, and health insurance exchanges—a marked departure from existing laws.”
