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US says it canceled 315,000 Obamacare policies last month
The agency also froze new broker registrations and said unauthorized enrollments could cost taxpayers up to $6.6 billion in 2026.
On Tuesday, the Centers for Medicare & Medicaid Services canceled 315,000 Obamacare health plans last month, citing unverified citizenship or immigration documentation and suspected improper enrollments affecting about 760,000 people.
Following Department of Health and Human Services estimates that nearly half of enrollments between 2021 and 2024 were potentially fraudulent, federal regulators barred 569 brokers who "submitted statistically implausible rates of plan year 2026 applications."
Led by Vice President JD Vance's antifraud task force, the policy cancellations could save about $2.2 billion in taxpayer funds, with CMS noting unauthorized enrollments could otherwise cost up to $6.6 billion.
National Association of Benefits and Insurance Professionals President Mychal Walker criticized the new industry-wide freeze, arguing it would "punish legitimate professionals instead of targeting the bad actors responsible for fraud."
The freeze will remain in effect until February 1, 2027, for brokers lacking 2026 registration, as the agency attempts to curb improper federal spending and secure the integrity of Affordable Care Act subsidies.