A prescription for fraud? GAO finds serious abuses in Obamacare exchanges - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
December 18, 2025 Newswires
Share
Share
Post
Email

A prescription for fraud? GAO finds serious abuses in Obamacare exchanges

Dr. Roger Stark Mountain States Policy CenterHerald/Review

Remember when Americans were told that the Affordable Care Act (also known as Obamacare) would lower health care costs and that if you liked your doctor, you could keep her? How things have changed over the past 15 years.

Health care costs continue to rise faster than inflation and millions of Americans have discovered that their health insurance plans don't cover their chosen physician.

As the saying goes, to add insult to injury, the Government Accountability Office (GAO) recently released a severe indictment of the federal Obamacare insurance exchanges that revealed troubling fraud in the program. The GAO enrolled 24 fake applicants in the federal exchange, with 18 being approved. The annual subsidy that each "applicant" received was $6,700 for a total cost to taxpayers of a little over $120,000.

That's not a huge amount, but the GAO investigation went deeper. It found that in 2023, there were 29,000 duplicate Social Security numbers, and in 2024, there were 68,000 duplicates listed in the federal exchange. In other words, in a two-year period, there were nearly 100,000 fake applicants who received taxpayer subsidies.

Also, the GAO discovered that when insurance brokers submitted incorrect or false Social Security numbers for applicants, the federal Center for Medicare and Medicaid Services (CMS), which runs the federal exchange, accepted the application anyway. In a real sense, the federal government has been complicit in the fraud.

The financial impact gets worse. In 2023 alone, the GAO found that there was no income verification on $21 billion in subsidies. Consequently, it is unknown how many applicants understated their annual income to receive higher subsidies. Looking at Census Bureau data, The Paragon Health Institute estimates that 6.4 million people were improperly enrolled in subsidized exchange plans at a cost of $27 billion.

With this lack of oversight or outright fraud, it would be beneficial to know how large the entire Obamacare exchange program is today. Data from 2024 reveal that the total cost of the subsidies in the ACA exchanges was $125 billion. In other words, over 20 percent of the cost to taxpayers may have been for ineligible expenses on the exchanges in 2024.The GAO report is timely and uncovers substantial abuse and fraud in a major government program. It should also serve as a warning and demonstrate the need for meaningful oversight in other government taxpayer-funded programs.Dr. Roger Stark is a visiting fellow with Mountain States Policy Center, an independent research organization based in Idaho, Montana, Eastern Washington and Wyoming. Online at mountainstatespolicy.org. A retired surgeon, Dr. Stark has authored three books, including "Healthcare Policy Simplified: Understanding a Complex Issue" and "The Patient-Centered Solution: Our Health Care Crisis, How It Happened, and How We Can Fix It."

Older

Who pays for your health care?

Newer

Jackson Names Alison Reed Head of Distribution

Advisor News

  • Americans aren’t turning retirement plans into action, LIMRA finds
  • Ashley Hinson ‘death tax’ story collides with truth
  • How advisors can prepare clients for an uncertain retirement landscape
  • Investors aren’t waiting out uncertainty
  • Transamerica and Advo(k)ate Advisors launch pooled employer plan
More Advisor News

Annuity News

  • Jackson Financial CEO caps 40-year career with blockbuster Q2
  • Lumos Insurance introduces the Immediate Care Plan to help families fund long-term care
  • NAIC regulators begin consensus phase on annuity illustration overhaul
  • AM Best Revises Outlooks to Negative for Subsidiaries of Group 1001 Insurance Holdings, LLC
  • Market-value adjusted annuities: Key considerations for advisors
More Annuity News

Health/Employee Benefits News

  • OCI PRESS RELEASE, AUGUST 5, 2026, BE AWARE OF ALTERNATIVE HEALTH INSURANCE PLANS
  • HINSON INTRODUCES BILL TO HOLD BIG HEALTH INSURANCE ACCOUNTABLE
  • Another 102 jobs cut as UCare liquidation continues
  • California nearly achieved universal healthcare. Now, millions are losing coverage
  • New York state made $21.6M in improper Medicaid payments
More Health/Employee Benefits News

Life Insurance News

  • Don't keep checks with clerical errors
  • The insurance distributor that builds its own software will win the next decade
  • iA Financial Group Reports Second Quarter Results
  • Supporting small businesses starts with smarter benefits conversations
  • Judge again tosses Penn Mutual whole life lawsuit alleging tax scam
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Royal Neighbors Unveils Its 2026 Scholarship Recipients 2026 Royal Neighbors Scholars Making a Difference Across the Country
  • Ibexis Announces Expanded Bank Relationships and New Index Options for FIA Plus® and WealthDefender® Series
  • Agent Review Launches Video AI Identity Verification to Help Protect Insurance Professionals, Consumers and Public Trust
  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet