Administration removes 760k from Obama Care alleging fraud

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The Centers for Medicare and Medicaid Services said on Tuesday it canceled roughly 315,000 Affordable Care Act marketplace enrollments covering about 760,000 people last month, alleging unauthorized enrollments, characterized by Vice President JD Vance as “rampant fraud.”

The enforcement action also involves verifying roughly 419,000 people to ensure they are legal U.S. residents and meet the income threshold requirements to receive benefits from the public exchanges of the ACA, also known as Obamacare, according to a CMS release.

The vice president’s White House Task Force to Eliminate Fraud led the cancellations, and it estimates the action will save roughly $2.2 billion in taxpayer-funded subsidies. Speaking at a Tuesday briefing, Vance accused the Biden administration of maintaining a system that enabled fraud.

“You have a system where, on the one hand, brokers are paid money to feed patients into the system, while on the other hand, the government isn’t even checking whether the people enrolled are actually eligible for the program. What do you have? Of course, rampant, rampant fraud,” Vance said.

It is unclear how many of those 315,000 enrollments involved people who were not eligible to receive coverage, or whether the Biden administration hadn’t actually verified they could enroll. The action comes as the Trump administration has made widespread accusations of fraud in U.S. health programs and restricted funding and eligibility for the federal-state Medicaid program.

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