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GAO Confirms Large-Scale, Systemic Fraud Risk in Expanded Obamacare Subsidies

The GAO audit revealed over $21 billion in questionable subsidies and identified 18 fake enrollees still receiving coverage, exposing major flaws in ACA marketplace fraud controls.

  • The GAO found that all four fake 2024 applicants and 19 of 20 in 2025 were approved despite missing documentation, exposing vulnerabilities in the Obamacare federal marketplace.
  • As Republicans debate the looming expiration of enhanced subsidies, the GAO report surfaced after House Ways and Means Chair Jason Smith, Jim Jordan, and Brett Guthrie requested the probe.
  • CMS policy allows new enrollments with an already-enrolled Social Security number to help identity-theft victims, but GAO found one Social Security number used for more than 125 insurance plans in 2023.
  • Jodey Arrington called the GAO report a `bombshell`, and Jason Smith described it as a `smoking gun` amid subsidy debates, with costs estimated at $350 billion for 10 years, returning to 2010 levels if expired this year.
  • CMS implemented commission changes and suspended 850 agents and brokers in 2024, while Lloyd Doggett said oversight failures followed broker reinstatements by the Trump administration.
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The Constitution Study broke the news in on Wednesday, December 3, 2025.
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