From TIME · Connor Greene · · 1m 20s
Trump axes 760,000 Obamacare enrollees over fraud claims
The administration says it's eliminating fraudulent coverage and saving billions, but critics question whether the crackdown is politically motivated.
In brief
The administration says it's eliminating fraudulent coverage and saving billions, but critics question whether the crackdown is politically motivated. The Trump administration is removing 760,000 people from Obamacare coverage citing fraud, though voters care more about healthcare costs than fraud prevention…
760,000 losing Obamacare coverage
The Trump administration announced Tuesday it will terminate Obamacare coverage for 760,000 enrollees, claiming widespread fraud in enrollment.
Vance says 2.2 billion saved
Vice President JD Vance, leading a White House anti-fraud task force, said removing these enrollees would save 2.2 billion dollars in taxpayer funds.
“We expect that most of these people are fraudulently enrolled.”
Broader fraud investigation underway
The administration's anti-fraud task force claims to have uncovered nearly 250 billion dollars in fraud since January, including 100 billion at the Department of Health and Human Services.
States push back on Medicaid holds
The administration paused 867.5 million in Medicaid payments to California and 199 million to Minnesota in July, citing suspected fraud. Both states dispute the claims.
Voters prioritize costs over fraud
A KFF poll found 71% of voters believe preserving Medicaid access matters more than rooting out fraud, and 65% think the payment deferrals are politically motivated.
Enrollment already declining sharply
The 760,000 removals represent 4% of the 19.2 million people with ACA coverage in 2026, down from over 24 million last year as premiums surged after subsidies expired.
The bottom line
The Trump administration is removing 760,000 people from Obamacare coverage citing fraud, though voters care more about healthcare costs than fraud prevention.
