California's undocumented immigrants edge closer to buying health plans under Obamacare

A bill that paves the way for Califoia’s undocumented immigrants to buy health plans under the Affordable Care Act was signed by Gov. Jerry Brown Friday, and now awaits federal approval.

The goveor’s signature means Califoia is one of the first states to ask the federal govement to waive a major provision under the Affordable Care Act. It also would be the first state to give undocumented immigrants the opportunity to purchase unsubsidized health plans on Covered Califoia, the exchange set up under the Affordable Care Act. Currently, undocumented immigrants can buy private plans on their own through a broker or directly through a health insurance carrier.

Known as Health4All, the bill allows Covered Califoia to submit a “1332 waiver,” which asks the federal govement to allow states to change certain aspects of the Affordable Care Act. The ACA, also called Obamacare, excludes those who are in the country illegally from buying health plans on the exchange.

Hawaii and Massachusetts have both submitted 1332 waivers, but for different requests other than Califoia’s.

Brown’s act was met with praise by several groups and from state Sen. Ricardo Lara, who authored the bill and who thanked the goveor.

“Today we ask the federal govement to remove barriers to health insurance access that discriminates against some of our residents on the basis of their documentation status ,” Lara said in a statement. “The current policy disallowing immigrants from purchasing care with their own money is both discriminatory and outdated.”

Lara’s bill is among others that have widened health care coverage for everyone in Califoia, regardless of legal status, but without direct federal funds. Last month, the state began to allow all income-eligible children, regardless of citizenship status, to have access to zero-cost or low-cost Medi-Cal benefits, including dental and mental health coverage.

Then last week, Lara’s Health4All bill received bipartisan support in a 28-to-10 vote in the state Assembly. Brown’s act is a sign of recognition that there are benefits to providing health care for all, said Anthony Wright, executive director of Health Access Califoia, a statewide health care consumer advocacy coalition.

“This proposal is not just a benefit for working immigrant families to more easily sign up for coverage, but helps the health and financial vitality of the entire community,” Wright said. “Beyond the important symbolism of inclusion, this waiver application will provide a practical benefit for many Califoia families with mixed immigration status, who will be able to buy coverage together easily, even if some family members are eligible for financial assistance and others are not.”

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But groups such as the Federation for Immigration Reform encouraged Califoia residents to oppose the bill, saying that it would encourage more illegal immigration to the Golden State. The group also said it would “reduce the quality and access to medical services in the state by increasing demand.”

In a statement, Covered Califoia officials said the process of submitting the 1332 waiver has begun.

“Covered Califoia has begun the inteal analysis to support the development and submission of a 1332 waiver application to the federal govement,” according to a statement from the exchange. “Once the application is submitted, the federal govement will have up to 180 days to review the waiver application and make a decision.”

About 2.6 million people live in Califoia illegally, which represents about 23 percent of the nation’s undocumented immigrants, state officials have said. They collectively pay an estimated $3.1 billion in taxes a year in Califoia, according to a report released in March by the non-profit, non partisan Institute on Taxation & Economic Policy.