A recent report from a government watchdog highlights significant issues with the Affordable Care Act (ACA), revealing that 90 percent of fake applicants received grants over the last two years, often without the necessary documentation.
The Government Accountability Office (GAO) has shared preliminary findings indicating ongoing secret testing related to Obamacare, pointing out potential fraud risks within federal ACA markets. This issue revolves around prepaid insurance premium tax credits, which have been at the center of political contention, notably leading to a government shutdown last month when attempts to renew credits for another three years collapsed.
The report claims that nearly all fictitious applicants were granted coverage for plan years 2024 and 2025, a situation reminiscent of similar GAO tests from between 2014 and 2016.
For the 2024 plan year, none of the four fake applicants provided any documentation for their Social Security Numbers (SSNs), citizenship status, or claimed income, yet they still received lower-cost coverage, thanks to a monthly $2,350 subsidy allocated to their insurance providers.
In 2025, the GAO expanded the number of bogus applicants to 20, with 18 still being actively tracked as of September 2025.
The total subsidies granted to these 18 fictitious applicants exceeded $10,000 monthly.
Furthermore, GAO uncovered potential misuse of Social Security numbers, including instances where deceased individuals appeared to receive benefits.
In just the 2023 plan, there were over 26,000 days of subsidized insurance linked to a single SSN. For 2024, 66,000 SSNs were found to be associated with at least a year of subsidized coverage.
The investigation also compared SSNs from deceased individuals in 2023 with those who received tax credits, revealing more than 58,000 matches, including around 7,000 individuals who passed away before their coverage began.
The report noted that the Centers for Medicare and Medicaid Services, which oversees the federal ACA marketplace, does not prevent the reuse of SSNs already used for enrollment, ostensibly to protect against identity theft.
Republican representatives have described the findings as a “smoking gun” that supports their assertions that Obamacare is fundamentally flawed.
“This alarming report clearly shows how the broken system, backed by Democratic policies, has cost insurance companies billions and raised healthcare costs for everyone,” stated House Ways and Means Committee Chairman Jason Smith (R-Mo.).
The GAO investigation was initiated at the request of several Republican committee chairs, including Smith, Brett Guthrie (Energy and Commerce), and Jim Jordan (Judiciary).
Guthrie expressed that these findings illustrate the urgent need for Republicans to strengthen and secure federal health programs to ensure Americans access affordable quality healthcare.
Jordan echoed similar sentiments, claiming the report reaffirms the drawbacks of Obamacare, which he believes has led to higher premiums and fewer health options for working Americans.
He further remarked, “Obamacare was built on lies and broken promises, leaving families struggling and increasing their costs.”
The Senate is set to vote on a plan to extend pandemic-era ACA tax credits, which are on the verge of expiring at the year’s end, as part of a recent agreement between Senate Democrats and Senate Majority Whip John Thune (R-SD) to prevent another government shutdown.
