760K removed from Affordable Care Act over fraud claims, Trump administration says

Washington — Vice President JD Vance and Trump administration officials announced Tuesday they plan to remove 760,000 Affordable Care Act enrollees from federal health exchanges, alleging that the individuals were fraudulently enrolled in the program or simply do not exist. Vance said the action and the cancellation of subsidy payments for hundreds of thousands of people from the exchanges, part of an administration‑wide crackdown on fraud, would produce $2.2 billion in savings. “We’re really making definite that the radical receiving Obamacare subsidies are really entitled to person them,” said Vance, who leads a authorities task unit to destruct fraud. He was flanked by Dr. Mehmet Oz, the head of the Centers for Medicare and Medicaid Services, or CMS, and other administration officials. Vance said the cancellation of about 315,000 enrollments covering 760,000 people was carried out in part because the government was not verifying whether those enrolled were eligible. He added that another 419,000 enrollments will receive further verification to confirm they qualify for the benefit. The Trump administration also announced a six‑month suspension on new agents or brokers who sign up enrollees for health coverage, stating that these intermediaries account for a disproportionate share of the fraud uncovered. Roughly 19.2 million Americans are actively enrolled in ACA marketplace health plans as of early 2026, according to the HHS website. Tuesday’s announcement is the latest in a broader effort by the Trump administration to combat fraud across federal healthcare programs, which officials say is necessary to curb runaway spending and protect taxpayers. The move comes amid stubborn inflation and rising healthcare costs that have pressured the administration to devise ways to lower expenses for Americans as affordability remains a central issue in the upcoming autumn midterm elections. Premiums for ACA coverage have doubled or tripled for many enrollees after Republicans declined to extend COVID‑era subsidies that had helped offset costs during the Biden administration. The expiration of those subsidies this year has prompted millions to downgrade their plans or drop coverage entirely. The Government Accountability Office warns that fraud risks in the advance premium tax credit remain, though the scale is uncertain. A GAO covert investigation using fictitious ACA applicants in 2024 and 2025 found that the federal marketplace approved subsidized coverage for nearly all 24 fake enrollees, a result disclosed in a December report. The White House referred The Associated Press to the Vice President’s office for further comment on broader healthcare affordability plans. The Vice President’s office and CMS did not respond to Associated Press requests for comment. The Wall Street Journal first reported the administration’s proposal to remove ACA enrollees from federal exchanges. Democratic lawmakers criticized the decision to strip enrollees of ACA coverage. Richard E. Neal, a Massachusetts Democrat and ranking member of the Ways and Means Committee, said, “Republicans person already created the worst healthcare situation ever, but each determination by the Trump Administration is designed to support making it worse.” Neal added, “As if making sum harder to entree done skyrocketing premiums and much reddish portion wasn’t achy enough, they’re doubling down to instrumentality it distant entirely.” Associated Press White House newsman Michelle Price contributed to this report.