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Tuesday, June 30, 2026

Fed Waiver Grants Health Insurance To Undocumented Immigrants

The State of Washington will now offer subsidized health insurance to undocumented immigrants. Gov. Jay Inslee said he appreciates the federal government’s recognition of the state’s effort to expand the state-based marketplace. He said this waiver is an important step toward providing affordable health insurance coverage for all Washingtonians.

Washington has been granted a waiver to federal law allowing the state to offer health insurance under the Affordable Care Act to noncitizens who are not lawfully residing in the United States. Washington is the 14th state to be granted a 1332 waiver. The Gov. said, “Access to health care not only helps strengthen families, it also improves our overall health care system and our state economy.”

Washington’s request is known as a State Innovation Waiver, also called a 1332 waiver. These waivers have been available since 2017 and are intended to allow states to “pursue innovative strategies for providing residents with access to high quality, affordable health insurance while retaining the basic protections of the ACA,” according to the CMMS website. 

The waiver from the U.S. Department of Health and Human Services and the U.S. Department of the Treasury allows Washington to suspend a portion of the ACA and extend access to health insurance to some 105,000 Washington residents who are currently ineligible due to their immigration status, according to a statement from Washington Health Benefit Exchange.

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The cost depends on the income level of enrollees. The Congressional Budget Office estimated $53 billion in subsidies for 9 million enrollees, which would be just under $6,000 per enrollee. The expanded coverage will bring additional public spending, though experts disagree on the overall impact on taxpayers.

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