Trump Administration to Remove 760,000 from Obamacare Over Fraud Allegations

Trump Administration officials on Tuesday announced that they would terminate the Obamacare coverage of 760,000 enrollees, alleging widespread fraud in enrollment.

Vice President JD Vance, who leads a White House task force aimed at eliminating fraud, said while speaking to reporters that $2.2 billion in taxpayer funds would be saved by removing the hundreds of thousands of Affordable Care Act (ACA) enrollees from the public insurance marketplaces.

“We expect that most of these people are fraudulently enrolled,” Vance said. He added that the Administration would also work to verify the eligibility of roughly 419,000 additional enrollees by ensuring that they are legal residents of the U.S. and meet the income threshold to receive Obamacare coverage.

The Administration will also place a six month moratorium on new health insurance brokers and agents, who help individuals sign up for health plans, Vance said.

The Administration’s move to eject fraudulent enrollees from the Obamacare insurance marketplaces is the latest in its broader efforts to crack down on fraud. An online “ledger” maintained by the White House asserts that the Vance-led anti-fraud task force has uncovered nearly $250 billion worth of fraud since Trump returned to office last January, including almost $100 billion at the Department of Health and Human Services.

That crackdown also saw the Administration pause $867.5 million in Medicaid payments to California and $199 million in Minnesota in July, an action for which Health Secretary Robert F. Kennedy Jr. cited “suspected fraud and noncompliance.” Both states have pushed back on the claims.

The Administration has additionally targeted alleged fraud in food stamps, childcare facilities, COVID-era relief funding, student loans, and homelessness funding, among other areas. Critics have accused it of disproportionally focusing on Democratic-led states in its crackdown.

An analysis from the Congressional Budget Office (CBO) released last August estimated that 2.3 million Obamacare enrollees improperly claimed premium tax credits by intentionally overstating their income in 2025. The Trump Administration has also claimed that agents and brokers have been responsible for illegally enrolling tens of thousands of people in ACA plans.

The 760,000 enrollees now being removed from the ACA rolls by the Trump Administration represent about 4% of the estimated 19.2 million people receiving coverage through the marketplaces in 2026.

That total has sharply declined from its peak of more than 24 million last year as ACA premiums have surged following the expiration of subsidies that helped reduce costs for millions of enrollees at the end of 2025.

A poll conducted by health policy research group KFF in June found that most voters believe there is at least some fraud in government health programs, and that more than 70% feel it is an extremely or very important issue for candidates to discuss ahead of the midterm elections. For Republican voters, fraud topped all health care issues asked about in the survey, including costs.

But health care costs, which have become increasingly expensive in the U.S. in recent years, weighed more significantly for voters overall, and the poll found that only a minority of those surveyed believed that reducing fraud in government programs would reduce such costs for them personally.

Amid the Trump Administration’s moves to withhold millions in Medicaid payments, 71% also voiced the belief that preserving access to coverage through the insurance program was more important than rooting out fraud. Meanwhile, 65% believed that the Administration’s Medicaid payment deferrals were mostly politically motivated.