Republicans are outraged over the new information showing that Obamacare is linked to $47 million in missing money and fraud in one years’ time – saying the system is bloated, intentionally corrupt and needs to be ended.
Here are the Findings:
The Paragon Health Institute says there were about 6.4 million improper enrollees this year—up from 5 million in 2024—primarily people claiming they make lower incomes so they can qualify for fully subsidized plans.
This fraud alone costs taxpayers over $27 billion each year with insurers pocketing premiums for “phantom” coverage that often goes unused. (The insurance company is paid directly from the government with those subsidies each month – whether or not the insurance is used)
The GAO’s preliminary report uncovered $21 billion in advanced premium tax credits (APTC) paid in 2023 with no evidence of tax reconciliation—meaning no verification that enrollees were actually eligible, resulting in billions in overpayments.
Total APTC spending hit nearly $124 billion in 2024 for about 20 million enrollees, with accusations that it’s riddled with abuse because enhanced subsidies made many plans “free” or ultra-cheap, incentivizing scams.
Investigators created fake identities, and 96% were approved for subsidized coverage—even with invalid Social Security numbers or no documentation.
This year 18 of 20 fictitious applicants remained enrolled, costing over $10,000 monthly in subsidies. (going directly to the insurance company whether or not the person uses the coverage)
Over 275,000 consumer complaints were made in just eight months of 2024 about enrollments or plan switches without consent.
GAO flagged 160,000 likely unauthorized changes in 2024.
Tens of thousands of Social Security numbers are linked to multiple plans or dead people, with subsidies continuing to be paid to insurance companies unchecked.
As enhanced subsidies (paid directly to insurance companies) are set to expire, Democrats are scrambling to keep the money stream going, even trying to get President Donald Trump to concede another $400 billion during recent budget battles. (which will go directly to insurance companies)
The enhanced premium tax credits were expanded during the COVID-19 pandemic and extended through the Democrats’ Inflation Reduction Act.
These credits are set to sunset at the end of this year, reverting to the original, ACA levels.
Without renewal, experts warn of premium hikes in 2026, potentially doubling costs for some middle-class families and forcing up to 4 million people off their plans.
Enrollment has already dipped as the deadline approaches, with federal data showing a decline tied directly to the impending expiration.
Conservatives say this proves Obamacare was never sustainable without endless taxpayer bailouts, adding that the program’s original design under Obama relied on mandates and penalties that failed to control costs.
Democrats’ reliance on these subsidies runs deep, with party leaders viewing them as essential to maintaining high enrollment numbers and propping up the insurance industry—a key donor base.****************
Obamacare’s troubles trace back to its 2010 passage—rammed through without a single Republican vote—promising affordable coverage but delivering skyrocketing premiums and deductibles while making insurance companies extremely wealthy
ObamaCares issues include:
Enrollment fraud schemes, especially in states using the federal HealthCare.gov platform, where brokers have been caught switching plans without consent to pocket commissions, costing billions annually.
The enhanced subsidies have driven ObamaCare sign-ups to record highs, but at a steep price—over $100 billion yearly, much of it benefiting households earning up to 400% of the poverty line.
Recent audits reveal parallels with other Democrat-backed programs, like California’s $70 billion in lost funds (including SNAP fraud and unbuilt high-speed rail), raising questions about systemic mismanagement in blue states.
Some critics connect ObamaCare fraud to larger schemes involving illegal migrants, where shell companies allegedly funnel public money
