Press Releases

WASHINGTON — A recent investigation by the Government Accountability Office (GAO) has exposed extraordinary levels of fraud and abuse inside the Affordable Care Act (ACA) marketplace — including fake identities receiving subsidies, widespread misuse of Social Security numbers (SSN), billions in unreconciled payments, and insurers collecting tax credits on behalf of deceased individuals.

These findings validate long-standing Republican warnings: Obamacare’s subsidy system lacks even the most basic guardrails and has created an environment where criminals, identity thieves, and unscrupulous brokers can exploit taxpayers with ease.

GAO FINDINGS: A BROKEN SYSTEM FUELED BY FRAUD

GAO investigators created fictitious identities using fake or never-issued Social Security numbers. Centers for Medicare & Medicaid Services (CMS) approved them anyway.

• 100% of fake applicants were approved in late 2024.
• 18 out of 20 fake applicants are still receiving subsidized coverage for 2025.
• CMS approved coverage with no documents or with fake ones, including fake citizenship papers.
• Brokers bypassed verification requirements simply by calling the call center and enrolling applicants without their presence.
• Monthly subsidies paid to insurers on behalf of GAO’s fake identities exceeded $12,300 per month.

These findings show that criminals armed with nothing more than fabricated paperwork — or no paperwork at all — can easily extract taxpayer subsidies.

Shocking Misuse of Social Security Numbers

GAO uncovered rampant SSN abuse that CMS failed to detect or block.

• One SSN was used on applications totaling over 125 insurance policies — the equivalent of 71 years of subsidized coverage.
• In 2024, 66,000 SSNs had more than one year’s worth of subsidized coverage in a single year.
• CMS has no mechanism to stop duplicate applications using the same SSN.
• $21 billion in subsidies were paid in 2023 with no evidence of tax reconciliation — representing 32% of all advanced premium tax credits (APTC) paid to identifiable SSN holders.

“No reconciliation” means no verification, no accountability, and likely billions in improper payments.

Insurers Still Collecting Subsidies for the Deceased

GAO matched ACA enrollment data with Social Security death records — and found a shocking overlap.

• 58,000 SSNs receiving subsidies matched individuals listed as deceased.
• At least 7,000 of those individuals died before coverage even began, meaning their identities were used to submit applications.

As a result, health insurers received $94 million in taxpayer-funded subsidies for deceased individuals.

Bottom Line:

GAO proved the ACA marketplace is a magnet for fraud—and Democrats’ answer is to extend subsidies without fixing a single failure. Republicans will not hand out billions more in taxpayer dollars to fake identities, duplicate SSNs, and the deceased. We’re restoring the guardrails, protecting working families, and ending the era of Democrats’ no-questions-asked subsidies.