Federal Policy
Trump Administration Terminates ACA Coverage for 750K Enrollees Citing Fraud
The Trump administration announced Tuesday it will terminate Affordable Care Act marketplace coverage for approximately 750,000 enrollees identified as fraudulent, according to Vice President Vance. The administration estimates the cancellations will save $2.2 billion in federal subsidies. CMS Administrator Dr. Mehmet Oz stated the terminated enrollments represent non-existent individuals. The announcement did not specify an effective date for the terminations or detail the criteria used to identify fraudulent enrollment.
Why it mattersLarge-scale ACA marketplace terminations could shift uninsured or newly eligible individuals to Medicaid in states with expansion, affecting enrollment volumes and state budget projections.