The Trump administration's Department of Health and Human Services has made significant strides in uncovering millions of alleged fraudsters on the Affordable Care Act rolls as part of a broader anti-fraud crackdown.
A surge in Obamacare enrollments at the beginning of President Biden's term led to a probe into the validity of millions of claims. The number of people enrolled in the government's healthcare program skyrocketed from 10 million to 22 million at its peak in 2024.
The Trump administration has removed nearly three million of the fraudulent enrollees, with a planned 2.6 million left to go. The administration estimates that the program's massive abuse equates to about $10 billion swindled from the American taxpayer between 2021 and 2024.
The Biden administration's relaxed eligibility checks and income verification requirements, as well as the allowance of more year-round enrollment, created an environment conducive to fraud. Fraudsters allegedly intentionally misstated their income levels to qualify and insurance brokers signed people up for Obamacare without their knowledge, known as "phantom enrollments." Some people also received subsidies they were not eligible for.
The report states that improper, phantom, and fraudulent enrollment peaked at 5.6 million people in 2025. An estimated 2.6 million improper and phantom enrollments remain, including over 1 million enrollments without a social security number.
The Trump administration has taken steps to address these issues by restoring income verification, ending some special enrollment opportunities, checking for duplicate Medicaid enrollment, investigating "phantom" enrollments by scamming brokers, and ending some special enrollment periods.
With about 19.2 million people remaining on the Obamacare rolls, the Trump administration continues to aggressively root out fraud, waste, abuse, and corruption. The report emphasizes the importance of preserving the fiscal and programmatic integrity of the ACA Exchanges to safeguard taxpayer-funded resources for those who truly need them.
