In a new preliminary report published by the Government Accountability Office (GAO), waste, fraud, and abuse have run rampant through Affordable Care Act marketplace plans, worsening health care plans for Americans, all while enriching big insurance companies.
The new watchdog investigation finds large-scale systemic failures that allow fake identities, dead people, and massive improper use of Social Security numbers to receive Obamacare subsidies. As part of the analysis, GAO even conducted covert operations which even included creating fictitious identities that flooded health insurers with unjustified subsidies. In fact, 100 percent of fake applicants were approved by the ACA Marketplace as recently as late 2024, and 90 percent of fake applicants continue to receive coverage in 2025.
As the report notes, such practices can result in wasteful federal spending on subsidies for enrollees who are not eligible. Further, such practices can result in harm and unexpected costs for consumers. These can include loss of access to medical providers and medications, higher copayments and deductibles, or repayment of subsidies if income or other eligibility was misrepresented.
The GAO investigation was requested by Committee on Energy and Commerce Chairman Brett Guthrie (KY-02), Committee on Ways and Means Chairman Jason Smith (MO-08), and Judiciary Committee Chairman Jim Jordan (OH-04).
Congressman Jim Jordan (OH-04), Chairman of the House Committee on the Judiciary, said:
“For years, we were told we could keep our plan, keep our doctor, and premiums would go down. None of it happened. This new report confirms what we already knew: under Obamacare, hardworking Americans saw their premiums skyrocket and their healthcare choices shrink, all while fraud benefitted insurance companies. Obamacare was built on lies and broken promises that hurt families and drove up costs.”
Congressman Brett Guthrie (KY-02), Chairman of the House Committee on Energy and Commerce, said:
“Republicans have consistently prioritized protecting patients and taxpayers by ridding our federal health programs of the waste, fraud, and abuse that ultimately drive up costs for patients. Republicans have sounded the alarm on the flawed structural integrity of Obamacare and how Democrats’ failed policies to temporarily prop up the program have exacerbated fraud, hurt patients, increased the burden on American taxpayers, and artificially masked the true health care affordability crisis plaguing Americans today. The concerning findings from GAO’s report further confirm that Republican efforts to strengthen, secure, and sustain our federal health programs are critical and necessary to ensure access to quality health care at prices Americans can afford.”
Congressman Jason Smith (MO-08), Chairman of the House Committee on Ways and Means, said:
“While Democrats defend waste, fraud, and abuse, Republicans are taking action to lower health care costs and protect care for all real, living Americans. GAO’s troubling report is the smoking gun that shows how this broken system, shielded by Democrat policies, has led to the federal government shoveling tens of billions of tax dollars to insurance companies through identity fraud and caused health care costs to skyrocket for all Americans. While Obamacare fraud is being confirmed by GAO, CMS, CBO and other outside reports, patients are suffering. They face higher health care costs and denied claims or delayed care when their providers struggle to verify which insurance is valid due to these fraud schemes. Rather than simply rubber stamp more bad spending and failed policies, we must take action to prevent further harm.”
