Trump Admin Uncovers Over $10B in Obamacare Fraud
The Trump administration said it has uncovered what it describes as a massive fraud scheme involving Affordable Care Act enrollment, alleging that billions of taxpayer dollars were improperly spent because of weakened eligibility safeguards implemented during the Biden administration.
According to a Department of Health and Human Services report, officials estimate that roughly $10 billion in taxpayer funds were improperly paid between 2021 and 2024 through fraudulent, phantom and otherwise improper Obamacare enrollments.
The administration said federal investigators have already removed nearly three million questionable enrollments from the Affordable Care Act exchanges while estimating that another 2.6 million remain under review.
The report states that enrollment in Affordable Care Act marketplace plans increased from approximately 10 million people at the start of then-President Joe Biden’s administration to roughly 22 million by 2024 after eligibility requirements and enrollment opportunities were expanded.
Federal investigators now believe millions of those enrollments were improper or fraudulent. According to the report, improper, phantom and fraudulent enrollments peaked at an estimated 5.6 million people in 2025, with more than one million current enrollments lacking a Social Security number.
Investigators identified several forms of alleged abuse, including applicants understating their income to qualify for larger taxpayer-funded subsidies and individuals receiving premium assistance despite failing to meet eligibility requirements.
The report also describes so-called “phantom enrollments,” in which insurance brokers allegedly enrolled people in Affordable Care Act plans without their knowledge in order to collect federal commissions. Officials said reduced verification requirements made those practices easier to carry out.
Since taking office, the Trump administration said it has restored stricter income verification requirements, ended several special enrollment periods, increased screening for duplicate Medicaid enrollments and launched investigations into brokers suspected of creating phantom policies.
According to a Department of Health and Human Services report, officials estimate that roughly $10 billion in taxpayer funds were improperly paid between 2021 and 2024 through fraudulent, phantom and otherwise improper Obamacare enrollments.
The administration said federal investigators have already removed nearly three million questionable enrollments from the Affordable Care Act exchanges while estimating that another 2.6 million remain under review.
The report states that enrollment in Affordable Care Act marketplace plans increased from approximately 10 million people at the start of then-President Joe Biden’s administration to roughly 22 million by 2024 after eligibility requirements and enrollment opportunities were expanded.
Federal investigators now believe millions of those enrollments were improper or fraudulent. According to the report, improper, phantom and fraudulent enrollments peaked at an estimated 5.6 million people in 2025, with more than one million current enrollments lacking a Social Security number.
Investigators identified several forms of alleged abuse, including applicants understating their income to qualify for larger taxpayer-funded subsidies and individuals receiving premium assistance despite failing to meet eligibility requirements.
The report also describes so-called “phantom enrollments,” in which insurance brokers allegedly enrolled people in Affordable Care Act plans without their knowledge in order to collect federal commissions. Officials said reduced verification requirements made those practices easier to carry out.
Since taking office, the Trump administration said it has restored stricter income verification requirements, ended several special enrollment periods, increased screening for duplicate Medicaid enrollments and launched investigations into brokers suspected of creating phantom policies.
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