Another government health care program is hemorrhaging billions in taxpayer dollars while real Americans are left vulnerable to fraud and identity theft.
Story Snapshot
- A new Government Accountability Office investigation found that 9 out of 10 fake Obamacare enrollees were kept on subsidized coverage, with fake identities and dead people receiving taxpayer-funded subsidies.
- The federal HealthCare.gov exchange approved nearly all of 24 fake applications, exposing massive gaps in identity, citizenship, and income verification.
- Brokers and call centers can enroll people without their presence, enabling unauthorized enrollments and plan switches that harm real consumers.
- Experts estimate tens of billions in improper payments, with CMS failing to reconcile subsidies with actual tax returns, leaving taxpayers on the hook.
- Republicans are demanding immediate audits, stricter verification, and limits on broker access to stop the waste and protect honest enrollees.
GAO Exposes Massive Obamacare Fraud
A Government Accountability Office investigation into the federal Affordable Care Act marketplace has revealed a shocking level of fraud and mismanagement. In a covert test, auditors created 24 fictional applicants and submitted them for subsidized coverage through HealthCare.gov. Twenty-three of those fake applications were approved, allowing synthetic identities and non-existent people to receive taxpayer-funded health insurance. For the 2025 plan year, GAO created 20 additional fake applicants; all 20 were initially approved, and 18 remained actively enrolled in subsidized plans as of September 2025. Each of these fraudulent enrollees could collect over $10,000 in Advanced Premium Tax Credits, amounting to hundreds of thousands of dollars in improper subsidies from a single test.
This is not a minor glitch; it is a systemic failure of program integrity. The investigation found that fake or non-existent Social Security numbers were accepted, and in many cases, no citizenship, income, or identity documentation was required or verified. The system allowed dead people, synthetic identities, and duplicate enrollments to receive subsidies, exposing billions in taxpayer dollars to waste and criminal exploitation. The House Ways and Means Committee highlighted that 9 out of 10 fake enrollees were kept on subsidized coverage, underscoring that the Biden-era CMS has failed to secure the exchange against fraud despite years of warnings.
How Brokers and Weak Rules Enable Fraud
The fraud is made possible by weak verification rules and the role of brokers in the Enhanced Direct Enrollment system. Brokers can bypass standard checks by calling the HealthCare.gov call center and submitting applications without the applicant present, opening the door to unauthorized enrollments and plan switches. This practice has led to a surge in consumer complaints, with CMS receiving over 183,000 reports of unauthorized enrollments and more than 90,000 complaints of unauthorized plan switches between January and August 2024. Automatic re-enrollment further compounds the problem, as fraudulent enrollments can be perpetuated year after year without detection.
Experts at the Paragon Health Institute have long warned that the federal exchange is at high risk for fraud, with nearly one-third of subsidies paid to individuals whose Social Security numbers do not match tax returns showing reconciliation. CMS has taken some steps, suspending 850 brokers for suspected fraud and identifying 2.8 million potentially duplicate Medicaid/ACA enrollments, but these actions have not addressed the core weaknesses in identity and eligibility verification. The result is a marketplace where real Americans are at risk of identity theft and unauthorized coverage, while taxpayers foot the bill for fake enrollees.
Billions in Taxpayer Dollars at Risk
The financial implications of this fraud are staggering. Billions of dollars in Advanced Premium Tax Credits are at risk of being paid to ineligible or non-existent individuals, with no effective system to reconcile those payments with actual tax returns. The Paragon Health Institute estimates that tens of billions in improper payments have already been made, largely due to income misstatement and broker incentives. The Kaiser Family Foundation notes that while CMS has taken steps to address unauthorized enrollments, systemic weaknesses remain, leaving the program vulnerable to ongoing abuse.
Republicans in Congress are now demanding immediate action: audits of APTC payments, stricter identity and eligibility verification, limits on broker commissions and EDE access, and potential changes to subsidy rules for low-income enrollees. The goal is to protect taxpayer dollars, restore integrity to the marketplace, and ensure that subsidies go only to those who are truly eligible. As the 2026 election cycle approaches, this report will be a major talking point, highlighting the consequences of years of lax oversight and the urgent need for reform.
Report: Obamacare Exchange Kept 9 Out Of 10 Fake Enrollees On Subsidized Coverage https://t.co/fvX1DUvBaN #mustread #feedly
— Truth2Freedom (@Truth2Freedom) December 8, 2025
For conservative families and working Americans, this is yet another example of how big-government programs, left unchecked, become engines of waste and abuse. The Biden administration’s hands-off approach to CMS oversight has allowed fraud to flourish, putting honest taxpayers and consumers at risk. The solution is not more spending or more bureaucracy, but stronger verification, real accountability, and a return to common-sense rules that protect both the integrity of the program and the people it is supposed to serve.
Sources:
Unpacking the Great Obamacare Enrollment Fraud – Paragon Institute
Auditors Submitted 24 Fake Applications for Subsidized Health Insurance—Only 1 Was Denied – Reason
Watchdog: Fraudulent Obamacare Subsidies – Politico
Fraud in Marketplace Enrollment and Eligibility: Five Things to Know – Kaiser Family Foundation
