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Plan-Switching, Sign-up Impersonations: Obamacare Enrollment Fraud Persists

The GAO found 1.5% of ACA applications involved fraud or unauthorized plan changes despite new 2024 rules, with $124 billion in tax subsidies at risk, according to federal estimates.

  • On Dec. 3, the GAO reported that despite CMS three-way-call rules, fraud persisted after investigators filed 20 fake enrollments spanning 2024 and 2025.
  • Federal verification steps rely on three-way calls using basic data like name and birthdate, while new-applicant exemption allows bypassing checks; CMS has not updated risk assessments since 2018, Seto J. Bagdoyan said.
  • GAO data shows about 160,000 GAO-identified cases and more than 275,000 CMS complaints in 2024, plus one Social Security number used for 125 policies in 2023.
  • A CMS spokesperson said, 'rooting out waste, fraud, and abuse is a top priority for CMS Administrator Mehmet Oz,' and the agency has suspended about 850 brokers after consumer complaints, with a House hearing set for Dec. 10.
  • The government watchdog warns the final report, expected in spring or summer of 2026, won't be finished as Congress debates extending nearly 20 million ACA enrollments and GOP measures to tighten verification.
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Hastings TribuneHastings Tribune
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Plan-switching, sign-up impersonations: Obamacare enrollment fraud persists

Florida resident Keith Jones says his Affordable Care Act insurance plan was changed multiple times this year without his permission. Now the 52-year-old is struggling with his health problems while facing large premium bills he says he shouldn’t owe.

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Fatherly Advice and Rants broke the news in on Wednesday, December 10, 2025.
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