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WASHINGTON (AP) -- Vice President JD Vance and other Trump administration officials said Tuesday they plan to remove 760,000 Affordable Care Act enrollees from public healthcare exchanges, alleging that the individuals were fraudulently enrolled in the program, or simply do not exist.
Vance said the discovery and canceled subsidy payments for hundreds of thousands of people from the exchanges, part of an administration-wide crackdown on fraud, would result in $2.2 billion in cost savings.
"We're actually making sure that the people receiving Obamacare subsidies are actually entitled to receive them," said Vance, who leads a government task force to eliminate fraud. He was flanked by Dr. Mehmet Oz, the administrator for the Centers for Medicare and Medicaid Services, or CMS, and other administration officials.
Vance said the cancellation of approximately 315,000 enrollments covering 760,000 people was done in part because the government was not checking whether people enrolled were eligible. Vance said another 419,000 enrollments will get additional verification to make sure they are eligible for the benefit.
The Trump administration also announced a six-month suspension on new agents or brokers who sign up enrollees for healthcare coverage, who officials say commit a disproportionate amount of the fraud they uncovered.
Roughly 19.2 million Americans are actively enrolled in ACA marketplace health plans as of early 2026, according to the Department of Health and Human Services website. The number of enrollees grew during the COVID-19 pandemic when enhanced subsidies became available through the American Rescue Plan Act and Inflation Reduction Act, both signed into law by former President Joe Biden.
Tuesday's announcement is the latest in an initiative by the Trump administration to address fraud around the country, including in federal healthcare programs, which officials say is needed to rein in runaway spending and protect taxpayers.
Some healthcare policy experts are calling for more transparency on how the Trump administration decided to cut hundreds of thousands of enrollees -- and question how many people may have been wrongly cut from the program.