JUNE 27, 2026
Trump Administration Removes Nearly 3 Million ACA Enrollees in Fraud Crackdown, Estimates $10 Billion in Improper Payments
The Trump administration's Department of Health and Human Services released a report estimating that improper, phantom, and fraudulent enrollments in the Affordable Care Act exchanges peaked at 5.6 million in 2025. The administration states it has already removed nearly 3 million enrollees from the ACA rolls, with approximately 2.6 million additional removals planned. The report estimates roughly $10 billion in improper payments occurred between 2021 and 2024.
The Trump administration's HHS released an internal report, obtained exclusively by Fox News Digital, asserting that a surge in ACA enrollment during the Biden administration was accompanied by widespread fraud, including so-called "phantom enrollments" in which insurance brokers allegedly signed people up for coverage without their knowledge.
ACA enrollment grew from approximately 10 million at the start of the Biden administration to a peak of 22 million in 2024. The HHS report attributes part of that growth to relaxed eligibility checks, reduced income verification requirements, and expanded year-round special enrollment periods implemented under Biden. The report states that some enrollees intentionally misstated income levels to qualify for subsidies they were not eligible for.
According to the administration official cited in the report, approximately $10 billion was improperly paid out between 2021 and 2024. The report also notes that over 1 million of the remaining 2.6 million flagged enrollments lack a Social Security number. As of the report's publication, approximately 19.2 million people remain enrolled in ACA exchange plans.