Vice President JD Vance and top Trump health administration officials announced the removal of 750,000 enrollees from Affordable Care Act plans. They’re also investigating 419,000 others for eligibility, focusing on verifying legal residency and income requirements.
At the press conference, CMS Administrator Mehmet Oz announced a six-month pause on new ACA brokers to curb future fraud. Vance stated that canceling subsidies for the 750,000 enrollees would save the federal government $2.2 billion.
Fraud Concerns Highlighted in Recent Report
A 2026 report from the HHS assistant secretary’s office flagged issues with ACA enrollment growth between 2021 and 2024. It cited Washington Post and KFF Health News reporting, claiming nearly half of this growth was “suspected to be improper, phantom or fraudulent.” The report identified 2.6 million improper and phantom enrollments, attributing this to enhanced subsidies that required no premium contribution from many enrollees, creating an environment ripe for fraud. Specifically, the report noted that making benchmark premiums for people with incomes between 100 and 150 percent of the federal poverty level (FPL) incentivized dishonest brokers to sign up unknowing individuals, who then received no benefit from coverage they were unaware of.
Brokers Under Scrutiny
The report criticized a system where brokers, incentivized by commissions, could enroll people without their knowledge. Chris Klomp, HHS chief counselor, emphasized the issue: “A health insurance enrollment ought to mean three very simple things: a real person, a real choice, a verifiable enrollment.”
The Paragon Health Institute has published reports alleging widespread ACA enrollment fraud. A 2026 Paragon report estimated that 27% of ACA sign-ups in 2026 were improper, involving people falsely represented as having low incomes to receive higher subsidies.
Political Blame Game
Vance blamed the Biden administration for fraud orchestrated by brokers, stating that relaxed eligibility rules and lack of verification allowed fraudulent enrollments, sometimes involving non-existent individuals. He criticized the Biden administration for creating a system where brokers were incentivized to enroll ineligible individuals without proper oversight. “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,” Vance said. “What do you have? Of course, rampant, rampant fraud.”
Oz highlighted another red flag: 35% of ACA enrollees have never used healthcare services, suggesting potential fraudulent enrollment. He also noted that 1.1 million enrollees this year lacked a Social Security number, making legal status verification impossible.
