Previous work has argued that, in the framework of plasma dark matter models, the DAMA annual modulation signal can be consistently explained with electron recoils. In the specific case of mirror dark matter, that explanation requires an effective low velocity cutoff, vc≳30,000km/s, for the halo mirror electron distribution at the detector. We show here that this cutoff can result from collisional shielding of the detector from the halo wind due to Earth-bound dark matter. We also show that shielding effects can reconcile the kinetic mixing parameter value inferred from direct detection experiments with the value favoured from small scale structure considerations, ϵ≈2×10−10.