Trump Administration to Cancel Obamacare Coverage for 760,000 Enrollees Over Alleged Fraud

Vice President JD Vance speaks during a news conference on fraud at the Eisenhower Executive Office Building on the White House Campus in Washington, D.C., on September 22, 2026. —Andrew Harnik—Getty Images Trump Administration officials on Tuesday announced plans to terminate the Obamacare coverage of 760,000 enrollees, alleging widespread fraud in enrollment.

Vice President JD Vance, who leads a White House task force aimed at eliminating fraud, said while speaking to reporters that $2.2 billion in taxpayer funds would be saved by removing the hundreds of thousands of Affordable Care Act (ACA) enrollees from the public insurance marketplaces.

“We expect that most of these people are fraudulently enrolled,” Vance said.

He added that the Administration would also work to verify the eligibility of roughly 419,000 additional enrollees by ensuring that they are legal residents of the U.S. and meet the income threshold to receive Obamacare coverage.

The Administration will also place a six month moratorium on new health insurance brokers and agents, who help individuals sign up for health plans, Vance said.

Read More: Trump Pledges to Issue $500 Refunds to Nearly a Million Obamacare Enrollees.

Are You Eligible? The Administration’s move to eject fraudulent enrollees from the Obamacare insurance marketplaces is the latest in its broader efforts to crack down on fraud.

An online “ledger” maintained by the White House asserts that the Vance-led anti-fraud task force has uncovered nearly $250 billion worth of fraud since Trump returned to office last January, including almost $100 billion at the Department of Health and Human Services.

That crackdown also saw the Administration pause $867.5 million in Medicaid payments to California and $199 million in Minnesota in July, an action for which Health Secretary Robert F.

Kennedy Jr. cited “suspected fraud and noncompliance.” Both states have pushed back on the claims.

The Administration has additionally targeted alleged fraud in food stamps , childcare facilities, COVID-era relief funding, student loans, and homelessness funding, among other areas.

Critics have accused it of disproportionally focusing on Democratic-led states in its crackdown.

An analysis from the Congressional Budget Office (CBO) released last August estimated that 2.3 million Obamacare enrollees improperly claimed premium tax credits by intentionally overstating their income in 2025.

The Trump Administration has also claimed that agents and brokers have been responsible for illegally enrolling tens of thousands of people in ACA plans.