Vice President JD Vance and the White House’s anti-fraud task force canceled Affordable Care Act policies covering more than 760,000 people, the administration announced Tuesday, citing suspected improper and fraudulent enrollments.
The task force, along with the Department of Health and Human Services and the Centers for Medicare and Medicaid Services, estimates the move will save taxpayers $2.2 billion.
Following the cancellation of 315,000 enrollments, the vice president said officials are going to conduct “additional verification” on about 419,000 more enrollees, whom they suspect may be improperly enrolled or ineligible for the program. Similarly, the Trump administration is banning some insurance brokers who are thought to be complicit in the fraudulent enrollment.
“We expect that most of these people are fraudulently enrolled,” Vance said. “We’re going to make sure that they’re, first of all, legal residents of the United States of America, and second of all, we’re going to make sure that they actually meet the income threshold requirements in order to receive these Obamacare benefits.”
This was the latest announcement from the Vance-led task force, first reported by the Wall Street Journal. The group, which was created to combat fraud throughout federally funded programs, was created earlier this year by President Donald Trump, who appointed Vance to lead the charge.
“This is what the fraud task force is all about,” the vice president said, alongside CMS Administrator Mehmet Oz and other senior administration officials at Tuesday’s press conference. “Saving the American taxpayers money, and on the other hand, ensuring that these programs that are very important” are not victim to waste and fraud.
Oz noted that CMS has issued termination notices to hundreds of brokers, including 469 in late August, and has placed a moratorium on new agents and brokers while officials investigate the eligibility of the additional 419,000 enrollees.
“There will be no new brokers for Obamacare in this country for the next six months, and we do not feel at all conflicted about that decision, because most of the fraud, a disproportionate amount of the fraud, is taking place from these individuals,” Oz said.
The ACA — colloquially known as Obamacare — was passed in 2010 under former President Barack Obama.
An estimated 19.2 million Americans were enrolled in ACA exchange plans as of February, according to a June report from HHS. During the Biden administration, however, ACA enrollment more than doubled from approximately 10 million to more than 22 million amid expanded subsidies and changes to eligibility-verification requirements, administration officials said. The White House has moved to reverse several of those Biden-era policies.
Conservative lawmakers contend Covid-era policies also led to the spike in fraudulent enrollees, ultimately creating the perfect storm to take advantage of the federal program.
The Government Accountability Office also previously found vulnerabilities in ACA enrollment controls. The GAO submitted four fictitious applications in the 2024 plan year, all of which were approved, and 20 in the 2025 plan year, 18 of which were approved. The 18 plans in 2025 generated more than $10,000 per month in advance premium tax credits, the report detailed.
Chairman of the Ways and Means Committee Jason Smith (R., Mo.) previously described the report as a “smoking gun that shows how this broken system, shielded by Democrat policies, has led to the federal government shoveling tens of billions of tax dollars to insurance companies through identity fraud.”
Similarly, Paragon Health Institute, a health-care think tank, estimated 6.2 million ACA exchange sign-ups in 2026 were improperly enrolled — this number represents roughly 27 percent of all exchange sign-ups. Paragon projected taxpayers could fund up to $25 billion in improper subsidy payments in 2026, capturing “nearly one-quarter of projected federal exchange subsidy spending.”
The announcement is the latest move by the Trump administration to address suspected fraud and improper enrollment in ACA coverage.