December 09, 2025

The Wall Street Journal: Obamacare Is a Mecca for Fraud

WASHINGTON, D.C.—The Wall Street Journal Editorial Board highlighted a new Government Accountability Office (GAO) investigation revealing widespread fraud in Obamacare’s subsidy system—from fake identities and Social Security Numbers of dead people being approved for coverage to brokers enrolling people without consent. The findings show a federal program unable or unwilling to verify basic information, resulting in billions in improper payments and a system ripe for abuse.

WORD ON THE STREET
 

The GAO last fall began an undercover test… Nearly all of its fictitious individuals were able to enroll in subsidized plans despite submitting false or no records to verify their identities and incomes.
 
Of GAO’s 24 applications, 23 were approved. Eighteen enrollees were still covered as of September, suggesting that the exchange and insurers didn’t verify information even after enrollment. The subsidies paid to insurance companies for those 18 applicants totaled more than $10,000 per month, equivalent to a $6,700 annual subsidy for each enrollee.
 
GAO says in some cases ‘we were not prompted to provide documentation’ to verify identity. No Social Security number? No problem.
 
In two cases, brokers called the Obamacare help center because applicants used invalid Social Security numbers. The center let brokers submit the fraudulent applications anyway.
 
GAO also analyzed enrollment data in 2023 and 2024 for data anomalies. It found more than 29,000 Social Security numbers in 2023 and nearly 68,000 in 2024 that were used to receive more than one year’s worth of insurance coverage with subsidies in a single year—meaning the same Social Security number was used by more than one person.
 
The Justice Department has charged numerous brokers with enrolling people in Obamacare plans, or switching them to new plans, without their consent. GAO identified at least 30,000 applications in 2023 and 160,000 in 2024 that had ‘likely unauthorized changes by agents or brokers.’
 
Using Census Bureau data, the Paragon Health Institute estimates that 6.4 million people this year were improperly enrolled in subsidized Obamacare plans, costing taxpayers $27 billion.
 
This year’s GOP tax bill included modest reforms to prevent Obamacare fraud, such as requiring the exchange to verify Social Security numbers and income data before enrolling applicants in plans. It also requires people to repay the government if their incomes turn out to be higher than what they estimated on their applications. The Congressional Budget Office projected that the tax bill’s Obamacare fraud controls could result in about one million more people going uninsured, but most aren’t eligible for subsidies—and some might not even exist.
 
Democrats want to boost enrollment in Obamacare no matter the cost because they view the subsidized and regulated plans as a way-station to a single-payer system. Senate Minority Leader Chuck Schumer plans to tee up a vote this week to extend the pandemic-era subsidies, which have been an inducement for fraud.
 
Republicans would be wise to remind voters that Democrats sold Obamacare on false pretenses—e.g., it would make healthcare “affordable.” Extending the subsidies would perpetuate that fraud.
 
THE BOTTOM LINE
 
The Wall Street Journal Editorial Board emphasizes that Obamacare is hemorrhaging taxpayer dollars to insurance companies and brokers through fraud, abuse, and a total lack of verification–and Democrats want to expand it.
 
In response to the GAO report, Chairman Arrington said, "There is absolutely no justification for perpetuating these subsidies or the failed government-controlled Obamacare system Democrats are artificially propping up. Instead, Republicans should continue to implement reforms that lower costs, expand affordable options, and protect American taxpayers."
 
Republicans have already taken steps in the One Big Beautiful Bill to prevent fraud and save taxpayers over $185 billion by requiring identity verification, income data, and repayment of improper subsidies.
 
As Democrats tee up a vote this week to extend COVID-era Obamacare subsidies rife with fraud, House Republicans will continue fighting to protect taxpayers, restore integrity to federal programs, and stop the rampant fraud baked into Obamacare.