JD Vance Announces 750,000 Obamacare Enrollees Removed for Suspected Fraud

Vice President JD Vance announced Tuesday that approximately 750,000 individuals have been removed from the federal health insurance exchange for suspected fraud, a move estimated to save taxpayers $2.2 billion. An additional 450,000 enrollees are currently under review.

Vance, who chairs the administration’s anti-fraud task force, stated at a White House-adjacent press conference that these individuals were likely enrolled fraudulently. He suggested some may not be aware of their enrollment, are not utilizing the program, or could be "phantom people" created to defraud taxpayers.

"We are stopping Obamacare enrollment for about 750,000 people who we believe are fraudulently enrolled in the program," Vance said. He indicated that some individuals might have been enrolled against their will or could be "people who don’t even exist—it’s just a person who exists on paper who was created to defraud the American taxpayer."

This action impacts roughly 3% of the 23 million individuals enrolled in the health insurance subsidies program this year. The administration is also implementing a six-month moratorium on new insurance brokers and agents enrolling Obamacare customers, according to Dr. Mehmet Oz, the administrator for the Centers for Medicare and Medicaid Services (CMS).

Oz stated that outreach attempts, including written notices and calls, to many of the removed enrollees have gone unanswered, and they have never filed a claim, suggesting a lack of genuine participation in the program. He described these cases as meeting the criteria for removal when there is no evidence of the enrollee's awareness or existence.

Regarding the 450,000 individuals still under scrutiny, Oz explained their situations presented "something about their story that was a little bit different than what we expected from the 100% fraud story." He added that these individuals would be given an opportunity to provide information confirming their Social Security numbers or insurance coverage.

This initiative follows other anti-fraud efforts led by Vance, including the withholding of Medicaid reimbursement funds from states, a moratorium on certain durable medical equipment providers, and the suspension of hundreds of hospice providers in California.

The Trump administration has previously stated intentions to dismantle the Affordable Care Act, with former President Trump vowing to end government payments to insurance companies and redirect funds for individuals to purchase their own healthcare if Republicans maintain control of Congress.