Fraud or Eligibility Error? 750,000 Americans Lose Their Health Insurance

The Trump administration has removed more than 750,000 people from ObamaCare markets, citing fraud and ineligibility. Vice President JD Vance estimated savings of $2.2 billion. The move comes amid a sharp decline in the number of insured, the expiration of enhanced subsidies, and political and legal disputes over the actual extent of fraud.

The Trump administration has removed more than 750,000 people from ObamaCare markets, claiming fraud and ineligibility. Vice President JD Vance presented the move as a $2.2 billion savings under the anti-fraud task force. The move occurs amid a sharp decline in the number of insured: in February 2026, the number of active coverage holders fell by about 2.6 million compared to 2025, partly due to the expiration of enhanced subsidies and the restoration of original income limits. Meanwhile, the Government Accountability Office (GAO) found that at least 160,000 applications in 2024 underwent unauthorized changes by agents, and that 18 out of 20 fictitious identities remained with active coverage in 2025. However, the GAO emphasized that these checks were intended to reveal weaknesses in the system and do not allow conclusions about the extent of fraud among all insured. The administration announced a six-month freeze on accepting new agents. On the other hand, officials in Democratic states criticized the move, and a federal court in Maryland struck down parts of the reform in June 2026. The battle is expected to continue ahead of the next enrollment period near the midterm elections.