Trump admin cracks down on estimated $10 billion in Obamacare fraud, boots millions from rolls

EXCLUSIVE: As part of an anti-fraud crackdown that spans the entirety of the federal government, the Trump administration’s Department of Health and Human Services (HHS) uncovered millions of alleged fraudsters on the Affordable Care Act rolls, according to a report obtained by Fox News Digital.

A Biden-era spike in Obamacare enrollments led to a probe into the veracity of millions of claims, a Trump administration official confirmed. At the beginning of Biden’s term, there were 10 million people enrolled in the government’s healthcare program, but that number drastically skyrocketed to 22 million at its 2024 peak.

Now, the Trump administration has removed nearly three million of the fraudulent enrollees, with a planned 2.6 million left to go.

The administration official said the program’s massive abuse equates to about $10 billion swindled from the American taxpayer between 2021 and 2024.

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The Biden administration relaxed eligibility checks and income verification requirements while also allowing more year-round enrollment in the program, according to the report. Furthermore, the report claims that fraudsters intentionally misstated their income levels in order to qualify and that insurance brokers signed people up for Obamacare without their knowledge, which are called “phantom enrollments.” Some people also received subsidies they were not eligible for.

“By our estimate, improper, phantom, and fraudulent enrollment peaked at 5.6 million people in 2025,” the report says. “We estimate 2.6 million improper and phantom enrollments remain, including over 1 million enrollments without a social security number.”

The Trump administration has since restored income verification, ended some special enrollment opportunities, checked for duplicate Medicaid enrollment, investigated so-called “phantom” enrollments by scamming brokers and ended some special enrollment periods.

Right now, about 19.2 million people remain on the Obamacare rolls.

“Preserving the fiscal and programmatic integrity of the ACA Exchanges is key to safeguarding taxpayer-funded resources for those that truly need them,” the report says. “The federal government paying brokers to enroll individuals without their knowledge is not.”

“The Trump Administration continues to aggressively root out fraud, waste, abuse, and corruption by promulgating new regulations to improve program integrity, investigating suspected improper or fraudulent enrollment, and taking action against agents and brokers committing fraud.”

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