In case anyone still believed Obamacare was some kind of well-oiled machine, a new Government Accountability Office (GAO) report just proved—once again—that the Affordable Care Act marketplace is about as secure as a screen door on a submarine. The watchdog found that fake identities, invalid Social Security numbers, and even dead individuals were routinely approved for taxpayer-funded subsidies. Yes, even the deceased are getting coverage—because apparently the system is just that committed to “access for all.”
The report released Wednesday revealed that every single application investigators submitted using fabricated identities or invalid SSNs was approved for 2024 coverage. A flawless 100% success rate. Amazing how well the system works… for fraudsters.
House Energy and Commerce Chairman Rep. Brett Guthrie didn’t hold back, reminding everyone what Republicans have been warning for years: “Republicans have sounded the alarm on the flawed structural integrity of Obamacare and how Democrats’ failed policies… have exacerbated fraud, hurt patients, increased the burden on American taxpayers.” But hey, Democrats keep insisting everything is fine—because nothing screams “success” like subsidizing imaginary people.
Guthrie added that the GAO’s findings confirm just how critical it is for Republicans to strengthen and secure federal health programs. Something we’ve known since day one, back when Democrats promised Obamacare would lower premiums and let you keep your doctor. And we all know how that turned out.
The government shutdown that wrapped up right before Thanksgiving came largely thanks to Democrats refusing to let go of the enhanced subsidies they rammed through in 2021 without a single Republican vote. These subsidies are set to expire at the end of 2025—much to the disappointment of those benefiting from the loopholes.
Originally, subsidies were supposed to help households between 100% and 400% of the federal poverty level. But Democrats couldn’t leave it there—they removed the upper-income cap, boosted subsidy amounts, and in some cases magically reduced premiums to zero. Zero-premium plans, of course, became prime real estate for fraudsters, who are more than happy to sign up real people without their knowledge.
In nine states, enrollment among people claiming incomes between 100% and 150% of poverty—those who qualify for zero-premium plans—actually exceeded the number of eligible residents. Nothing suspicious there.
GAO’s undercover probe found that 100% of their fake applications were approved in late 2024, and 18 out of 20 fraudulent enrollees were still receiving subsidized coverage for 2025. Marketplace systems approved coverage even when no documents were requested—or when investigators submitted blatantly fake documents, including fake citizenship papers. Truly an inspiring display of government oversight.
Rep. Jason Smith, chairman of the Ways and Means Committee, called the report the “smoking gun,” showing how Democrat-shielded policies have funneled tens of billions in taxpayer dollars to insurance companies through identity fraud—all while sending health care costs skyrocketing for hardworking Americans.
It gets better: GAO found 66,000 Social Security numbers that had been used for over a year of subsidized coverage in 2024—including one SSN that was used for the equivalent of 71 years of coverage in a single year. And because CMS doesn’t block new applications using the same SSN, the system happily keeps them rolling in.
Also, 58,000 SSNs receiving subsidies in 2023 matched the Social Security death database, resulting in $94 million in taxpayer-funded subsidies going to insurers on behalf of dead individuals. Obamacare: the only place where the afterlife still comes with benefits.
House Judiciary Chairman Jim Jordan summed it up: “For years, we were told we could keep our plan, keep our doctor, and premiums would go down. None of it happened… hardworking Americans saw their premiums skyrocket and their healthcare choices shrink, all while fraud benefited insurance companies.”
CMS, unsurprisingly, had nothing to say.
Democrats warn that without extending the expanded subsidies, millions will face steep premium hikes. But analysis shows those expiring subsidies account for just 3.3% of projected 2026 premiums—while Obamacare plan premiums have grown nearly twice as fast as employer plans since the law took effect. Quite the legacy.
At the end of the day, reports like this only reinforce what conservatives and Trump supporters have stood for all along: accountability, security, and protecting American taxpayers from waste and fraud. And with the truth finally laid bare again, there’s real hope that better, stronger, and more honest health care reforms are ahead.
