Trump Admin Says It Uncovered $10 Billion Obamacare Fraud Scheme
The Trump administration says it has uncovered what it describes as a massive fraud scheme within the Affordable Care Act.
Members of Trump’s administration allege that roughly $10 billion in taxpayer money was improperly paid out between 2021 and 2024 because of weakened enrollment safeguards under former President Joe Biden.
According to a Department of Health and Human Services report, officials have already removed nearly three million fraudulent or improper Obamacare enrollments and estimate another 2.6 million questionable enrollments remain.
Administration officials say the findings are part of a broader government-wide effort to eliminate fraud, waste, and abuse across federal programs.
The report traces the alleged problems to changes made during the Biden administration that expanded enrollment opportunities while relaxing income verification and eligibility checks.
At the start of Biden’s presidency, approximately 10 million people were enrolled through the Affordable Care Act exchanges. By 2024, enrollment had surged to roughly 22 million.
Federal investigators now believe millions of those enrollments were improper, fraudulent, or created without the knowledge of the individuals involved.
“By our estimate, improper, phantom, and fraudulent enrollment peaked at 5.6 million people in 2025,” the report states.
“We estimate 2.6 million improper and phantom enrollments remain, including over 1 million enrollments without a Social Security number.”
According to the report, several different forms of abuse contributed to the alleged fraud.
Officials say some applicants intentionally understated their income to qualify for larger taxpayer-funded subsidies.
Others allegedly received premium assistance despite failing to meet eligibility requirements.
Investigators also identified what they describe as “phantom enrollments,” in which insurance brokers allegedly enrolled people in Obamacare plans without their knowledge to collect federal commissions.
The report argues that reduced verification requirements made those practices significantly easier to carry out.
Since taking office, the Trump administration says it has restored stricter income verification requirements, ended several special enrollment periods, increased screening for duplicate Medicaid enrollment, and launched investigations into brokers suspected of creating phantom policies.
Officials also say they have strengthened oversight of agents participating in the federal marketplace.
As a result of those efforts, nearly three million enrollments have already been removed from the Affordable Care Act exchanges.
Even after those removals, approximately 19.2 million people remain enrolled.
The administration says its goal is not to reduce legitimate coverage but to ensure taxpayer dollars are being spent only on individuals who actually qualify.
“Preserving the fiscal and programmatic integrity of the ACA Exchanges is key to safeguarding taxpayer-funded resources for those that truly need them,” the report states.
“The federal government paying brokers to enroll individuals without their knowledge is not.”
The report also says the administration will continue pursuing additional enforcement actions against brokers and others accused of exploiting the program.
“The Trump Administration continues to aggressively root out fraud, waste, abuse, and corruption by promulgating new regulations to improve program integrity, investigating suspected improper or fraudulent enrollment, and taking action against agents and brokers committing fraud.”
The findings are likely to reignite debate over the Affordable Care Act and how aggressively eligibility rules should be enforced.
Supporters of the administration argue the report demonstrates that stricter oversight is necessary to protect taxpayers and preserve benefits for those legally entitled to receive them.
Critics of previous verification rollbacks have long warned that loosening enrollment safeguards could increase improper payments and fraud, while supporters of the Biden-era policies argued the changes made healthcare more accessible to eligible Americans, Fox News reported exclusively.
The administration says its investigations remain ongoing, with an estimated 2.6 million additional enrollments still under review as officials continue auditing the federal health insurance exchanges.
Trump has been pushing to replace Obamacare for over a decade, and this may give Republicans enough motivation to actually do something.
She Was Just 18: ABC Confirms Actress' Fatal Car Crash
Actress Kaylee Hottle, known for her starring role in two "Godzilla" movies, died Tuesday in a car accident in Maryland at the age of 18, according to police.
The Frederick County Sheriff's Office confirmed to ABC News that Hottle was one of two passengers in a car involved in a fatal single-vehicle collision early Tuesday morning.
Hottle was the only person in the car who died. A 19-year-old man, who was not identified, was driving the car and sustained non-life-threatening injuries, according to authorities.
Actress Kaylee Hottle attends the world premiere of "Godzilla x Kong: The New Empire" at the TCL Chinese Theater in Hollywood on March 25, 2024.
Frederic J. Brown/AFP via Getty Images
Excessive speed is “believed to be a contributing factor in the collision,” police said.
Hottle was born into an all-deaf family that spans four generations on her father's side, according to her IMDb.
The actress was best known for her role as Jia in the 2021 movie "Godzilla vs. Kong" and the 2024 sequel, "Godzilla x Kong: The New Empire."
In a March 2024 interview on "Good Morning America," Hottle described what her classmates thought of her "Godzilla" roles.
"They think it's super cool," she said. "They're seeing one of their friends on the big screen, and it's alongside Kong too."
Kaylee Hottle, as Jia, in a scene from "Godzilla vs. Kong."
Warner Bros. Pictures/Legendary Pictures via AP
Hottle's father Joshua said in a Facebook video Tuesday that he was flying to Maryland after learning of his daughter's death.
"I am taking a flight that I never would like to take," he captioned the video, in which he used American Sign Language.
Hottle's school, Texas School for the Deaf, paid tribute to the 18-year-old on Tuesday.
The school said Hottle was enrolled there as a senior and described her death as a "tremendous loss" in a social media post.
"Our hearts are with Kaylee's family, friends, classmates, and everyone who knew and loved her during this incredibly difficult time," the school wrote, adding, "Please keep Kaylee's loved ones in your thoughts as we mourn this tremendous loss together."
ABC News has reached out to Hottle's representative and father for comment.
