Pandemic-Era Obamacare Subsidies are a Magnet for FraudDemocrats want to expand a COVID subsidy system already flagged for massive fraud and abuse, with absolutely zero reforms
Washington,
January 8, 2026
Tags:
Fiscal Responsibility
WASHINGTON — House Democrats will attempt today to extend pandemic-era Obamacare subsidies without any reforms whatsoever. Minnesota’s abundance of recent fraud scandals demonstrates exactly why that’s a mistake. The Government Accountability Office (GAO) report released last month confirms the same subsidies are already flowing to fake identities, duplicate Social Security numbers, and even deceased individuals nationwide. Democrats want to extend and expand this program as-is to continue hiding the true cost of Obamacare. Republicans are passing bills that lower real health care costs. MINNESOTA: FEDERALLY FUNDED PROGRAMS, MASSIVE FRAUD
Minnesota’s experience highlights what happens when federal dollars flow through state-administered systems without adequate verification or enforcement. The Working Families Tax Cut directly target this failure — cutting waste, fraud, and abuse out of programs like Medicaid while protecting benefits for the truly vulnerable and restoring accountability Democrats abandoned. OBAMACARE SUBSIDIES LACK BASIC VERIFICATION GAO findings show federal Obamacare subsidies are being paid without effective identity, income, or eligibility checks. 100% of fake applicants created by GAO were approved in late 2024.
SUBSIDIES PAID FOR THE DECEASED
COSTS ARE EXPLODING — AND TAXPAYERS ARE ON THE HOOK Independent analysis of insurers’ mandatory filings shows that Obamacare’s subsidy structure has shifted nearly all financial risk to taxpayers.
In 2024, 90% of subsidy-eligible enrollees had access to plans costing $10 per month or less. As subsidies grow, premiums grow — and taxpayers absorb the increase by design. The unsubsidized Obamacare market shrank 25% from 2014–2024. REPUBLICAN BILL: LOWER HEALTH CARE PREMIUMS FOR ALL AMERICANS ACT House Republicans passed the Lower Health Care Premiums for All Americans Act — a targeted reform package that lowers premiums, expands coverage options, and restores accountability instead of extending Obamacare subsidies without guardrails. The bill:
BOTTOM LINE Democrats want to extend a broken system as-is. Republicans are fixing what’s broken. Democrats want to hide the cost of Obamacare. Republicans are lowering the cost of health care. ### |