New findings from a congressional watchdog are raising alarms about the integrity of Obamacare’s COVID-19-era subsidies. The Government Accountability Office (GAO), a nonpartisan body that reviews congressional spending, has uncovered significant flaws in how these subsidies are administered. The report indicates that Obamacare is funding tens of thousands of erroneous accounts, which include individuals using enhanced premium tax credits (APTCs) for multiple plans, deceased recipients, and those without proper identification.
According to the GAO’s report, “GAO’s preliminary analyses identified over 29,000 SSNs (Social Security numbers) in 2023 and nearly 68,000 SSNs in 2024 used to receive more than one year’s worth of insurance coverage with APTC in a single plan year.” This revelation highlights a troubling trend where incorrect or fraudulent claims could be siphoning off taxpayer money.
In an attempt to investigate the system’s vulnerabilities, the GAO created fake accounts to test if Obamacare could block them from gaining benefits. Surprisingly, out of 20 fictitious applicants, 18 remained actively covered by September 2025, costing over $10,000 in APTC each month. The GAO is continuing to monitor these enrollments, raising questions about the security measures in place against fraudulent claims.
Despite the alarming findings, it’s crucial to note that the detected fraud constitutes less than 1% of the overall enrollee population. This statistic, however, does not diminish concerns among lawmakers regarding the potential extensions of these enhanced subsidies, set to expire at year’s end. The fear is that without them, a significant majority of the 24 million Obamacare policyholders could face sudden and steep premium increases.
The political landscape surrounding this issue is divided. While Democrats are seeking to extend the enhanced subsidies, arguing they provide essential support for many Americans, Republicans are more skeptical. Many in the GOP worry about the financial implications of maintaining such subsidies, with some arguing that letting these benefits lapse would be a crucial step toward restoring fiscal responsibility. The Committee for a Responsible Federal Budget estimates that continuing the subsidies could exceed $30 billion a year.
The GAO also highlighted challenges in linking APTC expenses directly to Social Security numbers. In its analysis, more than $21 billion in APTC funding could not be reconciled with the SSNs provided to the federal Marketplace in 2023. Additionally, over $94 million in APTC funds had been allocated to SSNs associated with deceased individuals, further underscoring operational weaknesses.
One complexity in the federal marketplace allows applicants to use the same SSN to obtain multiple policies, a measure intended to protect individuals against identity theft and data entry errors. However, this flexibility may also contribute to the confusion and potential for misuse, as it complicates tracking and verifying legitimate claims.
As Congress faces mounting pressure to make crucial decisions before the end of the year, a vote is anticipated on whether to extend the current APTCs for an additional three years. Given the strong opposition from Republican lawmakers, the outcome remains uncertain, and many fear the vote will fail.
These findings from the GAO underscore significant administrative challenges within Obamacare. As lawmakers grapple with the future of healthcare funding, particularly amidst the pressures of rising costs and potential fraud, scrutiny over the program’s effectiveness and sustainability will likely continue to intensify.
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