FACT FOCUS: Democrats did not shut down the government to give health care to 'illegal immigrants' - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Health/Employee Benefits News
Newswires RSS Get our newsletter
Order Prints
October 7, 2025 Newswires
Share
Share
Post
Email

FACT FOCUS: Democrats did not shut down the government to give health care to 'illegal immigrants'

Staff WriterVincennes Sun-Commercial

AP-President Donald Trump and other high-ranking Republicans claim Democrats forced the government shutdown fight because they want to give free health care to immigrants in the U.S. illegally.

Democrats are trying to extend tax credits that make health insurance premiums more affordable on marketplaces established by the Affordable Care Act, commonly known as Obamacare, and reverse Medicaid cuts in Trump's big bill passed this summer. But immigrants who entered the country illegally are not eligible for either program.

Here's a closer look at the facts:

CLAIM: Democrats shut down the government because they want to give free health care to immigrants who entered the U.S. illegally.

THE FACTS: This is false. Democrats say they are pushing for the inclusion of key health care provisions in the next congressional spending package. In particular, they are seeking an extension of tax credits that millions of Americans use to buy insurance on the Affordable Care Act exchange and a reversal of Medicaid cuts made in the bill Trump signed into law in July. However, immigrants in the U.S. illegally are not eligible for any federal health care programs, including insurance provided through the Affordable Care Act and Medicaid. Hospitals do receive Medicaid reimbursements — which would be reduced under Trump's bill — for emergency care that they are obligated to provide to people who meet other Medicaid eligibility requirements but do not have an eligible immigration status, according to KFF, a nonprofit health policy research, polling and news organization. This spending accounted for less than 1% of total Medicaid spending between fiscal years 2017 and 2023.

Sabrina Corlette, founder and co-director of Georgetown University's Center on Health Insurance Reforms, called the Republicans' claims "a flat-out lie."

"The law is very clear," Corlette said.

Speaking in the Oval Office on Tuesday about a deal with Pfizer to lower drug prices, Trump predicted the shutdown and made the false claim: "We'll probably have a shutdown because one of the things they want to do is they want to give incredible Medicare, Cadillac, the Cadillac Medicare, to illegal immigrants." He added later that "they want to have illegal aliens come into our country and get massive health care at the cost to everybody else."

Asked by a reporter to clarify what his comments referred to, Trump said "when an illegal person comes, a person who came into our country illegally, therefore breaking the law," adding that "we just as a country cannot afford to take care of millions of people who have broken the law coming in."

Other Republicans, including Vice President JD Vance and House Speaker Mike Johnson, have made similar claims.

The Senate's Democratic leader, Sen. Chuck Schumer, rebutted these allegations, calling them "a lie, plain and simple."

Immigrants in the U.S. illegally are not eligible for insurance bought on the Affordable Care Act exchange or for Medicaid. To qualify for the former, an enrollee must live in the U.S., be a U.S. citizen or have another lawful status and not be incarcerated. A Medicaid enrollee must meet certain financial requirements, be a resident of the state in which Medicaid is being received and be a U.S. citizen or have a qualifying lawful status.

Health care premiums for millions of Americans could skyrocket if Congress fails to extend tax credits that many people use to buy insurance through Affordable Care Act marketplaces. Those subsidies were put in place during the COVID-19 pandemic but are set to expire.

Among the Medicaid cuts Democrats are seeking to reverse is a reduction to reimbursements hospitals receive when they perform emergency care they are legally mandated to provide on people who would qualify for Medicaid if not for their immigration status. This would affect the 40 states, plus Washington, D.C., that have adopted a Medicaid expansion created by the Affordable Care Act.

The law Trump signed would also restrict the eligibility of lawfully present immigrants such as refugees and asylees for insurance through the Affordable Care Act, Medicaid and Medicare.

Some states use their own money, not federal funds, to provide health care to immigrants who don't have lawful status. An earlier version of Trump's tax breaks and spending cuts bill tried to curb these programs, but the provisions did not make it into the final version.

"It's a compelling talking point to say that Democrats want to provide health care to undocumented immigrants, but it's just not true in terms of the cuts they're trying to reverse," said Larry Levitt, executive vice president for health policy at KFF.

___

This story was first published on Oct. 1, 2025. It was published again on Oct. 3, 2025, to correct that to qualify for insurance bought on the Affordable Care Act exchange, not for Medicaid, an enrollee must live in the U.S., be a U.S. citizen or have another lawful status and not be incarcerated.

Older

Government shutdown puts Louisiana health coverage costs on the line

Newer

3 REITs to Watch as Rate Cuts Ignite a Real Estate Super Cycle

Advisor News

  • Metlife study finds less than half of US workforce holistically healthy
  • Invigorating client relationships with AI coaching
  • SEC: Get-rich-quick influencer Tai Lopez was running a Ponzi scam
  • Companies take greater interest in employee financial wellness
  • Tax refund won’t do what fed says it will
More Advisor News

Annuity News

  • The structural rise of structured products
  • How next-gen pricing tech can help insurers offer better annuity products
  • Continental General Acquires Block of Life Insurance, Annuity and Health Policies from State Guaranty Associations
  • Lincoln reports strong life/annuity sales, executes with ‘discipline and focus’
  • LIMRA launches the Lifetime Income Initiative
More Annuity News

Health/Employee Benefits News

  • Insurer ends coverage of Medicare Advantage Plan
  • NM House approves fund to pay for expired federal health care tax credits
  • Lawmakers advance Reynolds’ proposal for submitting state-based health insurance waiver
  • Students at HPHS celebrate 'No One Eats Alone Day'
  • Bloomfield-based health care giant Cigna plans to lay off 2,000 employees worldwide
More Health/Employee Benefits News

Life Insurance News

  • The structural rise of structured products
  • AM Best Affirms Credit Ratings of Members of Aegon Ltd.’s U.S. Subsidiaries
  • Corporate PACs vs. Silicon Valley: Sharply different fundraising paths for Democratic rivals Mike Thompson, Eric Jones in 4th District race for Congress
  • Continental General Acquires Block of Life Insurance, Annuity and Health Policies from State Guaranty Associations
  • LIMRA launches the Lifetime Income Initiative
Sponsor
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Elevate Your Practice with Pacific Life
Taking your business to the next level is easier when you have experienced support.

LIMRA’s Distribution and Marketing Conference
Attend the premier event for industry sales and marketing professionals

Get up to 1,000 turning 65 leads
Access your leads, plus engagement results most agents don’t see.

What if Your FIA Cap Didn’t Reset?
CapLock™ removes annual cap resets for clearer planning and fewer surprises.

Press Releases

  • LIDP Named Top Digital-First Insurance Solution 2026 by Insurance CIO Outlook
  • Finseca & IAQFP Announce Unification to Strengthen Financial Planning
  • Prosperity Life Group Appoints Nick Volpe as Chief Technology Officer
  • Prosperity Life Group appoints industry veteran Rona Guymon as President, Retail Life and Annuity
  • Financial Independence Group Marks 50 Years of Growth, Innovation, and Advisor Support
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet