Vice President JD Vance and CMS Administrator Dr. Mehmet Oz announced Tuesday that the White House Task Force to Eliminate Fraud is cutting off subsidy payments for roughly 760,000 Affordable Care Act exchange enrollments they say were fraudulent, unauthorized, or never belonged to real, eligible people.
Vance, who chairs the task force, said the cancellations will save American taxpayers an estimated $2.2 billion.
He put that number in terms Democrats never use: the average American child receives about $4,000 a year in health-care benefits.
That means the money being yanked from fraudsters is the equivalent of health coverage for 550,000 American children.
“We are announcing $2.2 billion in American taxpayer money that we’re saving by doing what should have been an obvious thing,” Vance said at a news conference at the Eisenhower Executive Office Building.
“We’re actually making sure that the people receiving Obamacare subsidies are actually entitled to receive them… Amazingly, we weren’t doing that before.”
WATCH:
VP Vance on huge @WHFraudTF win:
“We are announcing $2.2 billion in American taxpayer money that we’re saving by doing what should have been an obvious thing. We’re actually making sure that the people receiving Obamacare subsidies are actually entitled to receive them”🔥 pic.twitter.com/XRfAThR29a
— Vice President JD Vance (@VP) September 22, 2026
Vance described one ring of 40 brokerage agents that funneled 50,000 people into the system.
JD Vance:
What this looks like is, in one case, we found a fraud ring that had 40 agents—40 brokerage agents—who had funneled 50,000 people into the Obamacare system fraudulently.Now, some of those people were probably legitimate. Most of those people were not eligible. Either they didn’t meet the citizenship or the income requirements. Many of those people, quite literally, didn’t even exist.
We had a system in this country that rewarded brokers, that made people rich for enrolling fake people in programs that are meant to ensure that our fellow citizens have healthcare. This was a scandal.
WATCH:
VP Vance on rampant Obamacare fraud:
“We found a fraud ring that had 40 brokerage agents who had funneled 50,000 people into the Obamacare system fraudulently…Many of those people quite literally didn’t even exist. We had a system in this country that rewarded brokers, that… pic.twitter.com/28mdDDLlJD
— Vice President JD Vance (@VP) September 22, 2026
Vance said the 760,000 figure is a mix of phantom enrollees who do not appear to exist and real people who never should have been on the taxpayer tab, including people signed up without their knowledge, people with employer coverage, and people whose income blew past the subsidy limits.
Another 419,000 enrollments are now under additional verification for citizenship and income.
Oz was blunt about why so many of these accounts failed the smell test. Investigators wrote them, called them, and even sent FedEx packages. No answer. No doctor visit. No prescription. Nothing.
“They haven’t bought a prescription medication. They haven’t seen a doctor. That’s just not possible,” Oz said.
He put the no-use rate at about 35 percent, roughly twice what you would expect in a normal insurance pool.
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He also said more than 1.1 million people who enrolled this year had no Social Security number on file, when the typical share is about 1 percent.
The Gateway Pundit flagged that same “ghost patient” problem last year, when Sen. Roger Marshall said 35 percent of counted Obamacare enrollees file zero claims while brokers can sign people up with little more than a name and a birthdate. The government still cuts the check.
Vance put the $2.2 billion in terms even a Democrat staffer could understand. The average American child receives about $4,000 a year in health care benefits.
By his math, the money being pulled out of fraudsters’ pockets is the equivalent of health care for 550,000 American children.
WATCH:
“To put into context the amount of money that we’re stopping from going to fraudsters today, the average American child receives about $4,000 in health care benefits every single year. That means that we are saving 550,000 American children’s worth of health care that was going… pic.twitter.com/V7hO0igeDe
— Vice President JD Vance (@VP) September 22, 2026
Brokers Made Bank. Taxpayers Got the Bill.
Oz announced a six-month national moratorium on new Obamacare brokers. Existing agents can keep working. New ones are frozen.
“There will be no new brokers for Obamacare in this country for the next six months,” Oz said. “Most of the fraud, a disproportionate amount of the fraud, is taking place from these individuals.” CMS has already moved to terminate hundreds of brokers, including 469 late last month.
This is the same broker model The Gateway Pundit documented when two executives, Cory Lloyd and Stephen Strong, were sentenced to 20 years each in a $233 million Obamacare subsidy scam. Prosecutors said they improperly enrolled people, cooked income numbers, and used the haul for an 80-foot yacht, luxury cars, and a Florida Keys mansion. Read TGP’s February report here.
The Biden-Harris years made that industry even juicier. Enhanced COVID-era subsidies, loose verification, and a commission system that paid agents to stuff names into Healthcare.gov created the perfect incentive structure: enroll first, ask questions never.
