Vice President JD Vance and other Trump administration officials said Tuesday they plan to remove 760,000 Affordable Care Act enrollees from public healthcare exchanges, alleging that the individuals were fraudulently enrolled in the program, or simply do not exist.
Vance said the discovery and canceled subsidy payments for hundreds of thousands of people from the exchanges, part of an administration-wide crackdown on fraud, would result in $2.2 billion in cost savings.
“We’re actually making sure that the people receiving Obamacare subsidies are actually entitled to receive them,” said Vance, who leads a government task force to eliminate fraud. He was flanked by Dr. Mehmet Oz, the administrator for the Centers for Medicare and Medicaid Services, or CMS, and other administration officials.
Vance said the cancellation of approximately 315,000 enrollments covering 760,000 people was done in part because the government was not checking whether people enrolled were eligible. Vance said another 419,000 enrollments will get additional verification to make sure they are eligible for the benefit.
The Trump administration also announced a six-month suspension on new agents or brokers who sign up enrollees for healthcare coverage, who officials say commit a disproportionate amount of the fraud they 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 an initiative by the Trump administration to address fraud around the country, including in federal healthcare programs, which officials say is needed to rein in runaway spending and protect taxpayers.
I’m not sure I follow your logic there. As I understand it the subsidies are paid to the health insurance companies (which I assume is what you’re referring to as “Healthcare companies”) to get people access to cheaper plans. The people who need those subsidies basically can’t afford a plan without them, so this will actually drive a lot of people off insurance, reducing income for the insurance companies.
And if you actually did mean the healthcare providers, not the insurance companies, they don’t benefit either, because driving people off insurance means they’ll take less elective and preventative care. Plus uninsured patients are a lot less reliable at paying their bills. So either way you slice it, I really can’t see how this is a win for the corporations, unless there’s something I’m missing here.
Obamacare is government-subsidized healthcare. Get rid of Obamacare recipients and those subsidies disappear. Now The People have to pay them to the healthcare companies instead of getting it paid by the gov.
OK? Why do the companies care? They’re getting paid either way. And with the subsidies in place, they’re getting paid far more reliably.
They’re not getting paid either way. If the govt pays it, then they are cut out. And the govt will likely also negotiate lower prices.
Are you… Are you actually still not comprehending that they’re the ones getting paid by the government?
These subsidies are not paid to the doctor or hospital. They are paid to the insurance company the person has selected on the marketplace. A lot of these people cannot afford these plans without the subsidies and therefore the healthcare company will get less/no money from them.
Maybe you could make the argument that the insurance companies are losing money on these plans offered to these people but knowing what I pay personally for marketplace insurance I doubt that.
They simply don’t pay for insurance and then go to the hospital only for emergencies and continue to overwhelm the system. This is meant to punish poor people.
Not sure if you don’t realize this but the hospitals will often just refuse treatment if you don’t have insurance.