Vice President JD Vance announced Tuesday that the administration's anti-fraud task force would remove approximately 750,000 people from the Affordable Care Act exchanges due to suspected fraud, saving taxpayers an estimated $2.2 billion.
The action targets individuals who are either unaware of their enrollment, not using the coverage, ineligible due to income or employer-sponsored insurance, or in some cases nonexistent phantom enrollees created to defraud the system. Vance, who chairs the White House Task Force to Eliminate Fraud, described the move during a press event at the Eisenhower Executive Office Building.
"We are stopping Obamacare enrollment for about 750,000 people who we believe are fraudulently enrolled in the program," Vance said. He noted that some may have been signed up against their will or without knowledge.
Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz joined the announcement and declared a temporary national moratorium on new Obamacare brokers for several months. Additional verification efforts will target another 419,000 enrollees to confirm residency and income eligibility.
The crackdown builds on prior actions by the task force, which Trump appointed Vance to lead earlier this year. Officials linked much of the improper enrollment to practices encouraged under the previous administration, including relaxed verification and broker incentives.
The removals represent about 3 percent of the roughly 23 million current ACA marketplace enrollees. The task force has identified billions in misused funds across federal programs since its formation.
Critics from left-leaning groups have called the effort a pretext for broader cuts, but administration officials stressed it focuses on clear cases of ineligibility and fraud while protecting legitimate beneficiaries.
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