A recent report from the General Accounting Office (GAO) sheds light on alarming levels of fraud within the Obamacare subsidy system. According to the findings, insurance companies received $94 million in payments for individuals who were deceased. This staggering amount is part of an estimated $27 billion in fraud linked to Obamacare, as outlined by the Congressional Budget Office.
The GAO report highlights some shocking statistics. It reveals that 58,000 Social Security numbers tied to advanced premium tax credits matched records in the Social Security death data. More than 7,000 of those associated with these numbers had died before even beginning their coverage. In one particularly outrageous instance, a single Social Security number was used to obtain 125 insurance policies, equating to an astonishing 26,000 days of coverage…essentially 71 years.
The investigation portrays a system riddled with oversights. Fake applicants were easily approved, and deceased individuals continued to receive subsidies. Rep. Jason Smith of Missouri emphasized the report’s findings, stating, “GAO’s troubling report is the smoking gun that shows how this broken system, shielded by Democrat policies, has led to the federal government shoveling tens of billions of tax dollars to insurance companies through identity fraud.” He suggests that the current structure has not only failed but has contributed to the skyrocketing costs of healthcare for Americans.
The GAO took steps to demonstrate the system’s vulnerabilities. They filed fake applications to uncover how easily the system could be manipulated. For the 2024 application year, the GAO submitted four fictitious requests, which were all approved without the necessary documentation. The following year, they tested this further by submitting 20 fake applications, with 18 still actively covered as of September 2025.
Rep. Jodey Arrington of Texas described the report as a “bombshell,” emphasizing that it reveals “there is absolutely no justification for perpetuating these subsidies or the failed government-controlled Obamacare system Democrats are artificially propping up.” His sentiments reflect a broader frustration among critics of the program, who point to systemic failures as justification for its reconsideration.
Republican Sen. Mike Crapo of Idaho echoed these concerns, labeling the GAO findings as evidence of Obamacare’s brokenness. He noted that the temporary credits introduced during the COVID pandemic have only worsened existing structural flaws. “Fraud has exploded, leaving taxpayers to subsidize criminals and shady insurance brokers,” he remarked. He warns that the rising premiums and out-of-pocket costs indicate that throwing more money into a flawed system will not yield the intended results.
This report demonstrates the urgent need for reform in the healthcare subsidy framework. With evidence of substantial fraud and misuse, the implications for Americans are significant. As the situation unfolds, the findings compel a reevaluation of the current system, pushing for real change to protect taxpayer dollars and ensure that healthcare is accessible for those who genuinely need it.
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