Trump Administration to Cut 760,000 from ACA Rolls Over Alleged Fraud

Vice President JD Vance announced Tuesday that the Trump administration plans to remove approximately 760,000 individuals from the Affordable Care Act (ACA) marketplaces, alleging fraudulent enrollment and existence issues.

According to Vance, who leads a government task force aimed at eliminating fraud, these cancellations, impacting an estimated 315,000 enrollments, are part of an administration-wide crackdown designed to save $2.2 billion. He stated that the government had not been adequately verifying eligibility for ACA subsidies prior to this initiative. An additional 419,000 enrollments will undergo further verification to confirm eligibility.

The administration also revealed a six-month suspension for new agents and brokers who enroll individuals in healthcare coverage, as officials identified them as contributing disproportionately to the discovered fraud.

These measures come as the administration faces pressure from persistent inflation and rising healthcare costs, with affordability being a key issue in upcoming elections. ACA insurance premiums have seen significant increases during the current term, partly due to the expiration of COVID-era subsidies that had previously helped enrollees manage costs.

Concerns about fraud risks within the advance premium tax credit system have been noted by the Government Accountability Office (GAO). A December report indicated that the federal marketplace approved subsidized coverage for nearly all of the GAO's 24 fictitious ACA applicants enrolled in 2024 and 2025 during covert testing.

Democratic lawmakers have criticized the administration's decision. Representative Richard E. Neal, ranking member of the Ways and Means Committee, stated that the move would exacerbate existing healthcare challenges. "As if making coverage harder to access through skyrocketing premiums and more red tape wasn't painful enough, they’re doubling down to take it away entirely," Neal said.

Roughly 19.2 million Americans were actively enrolled in ACA marketplace health plans as of early 2026, according to the Department of Health and Human Services. The Wall Street Journal initially reported on the administration's plan to remove ACA enrollees.