Vice President Announces Major Action Against Obamacare Fraud

Vice President JD Vance, who has taken on the role of “Fraud Czar” under President Donald Trump, revealed plans to cut off approximately 750,000 unauthorized individuals from participating in Obamacare exchange health insurance programs during a press conference on September 22, 2026.

During the announcement, Vance highlighted that his task force had recovered around $2.2 billion by terminating the enrollment of individuals who were not eligible for coverage.

“To put it simply, the $2.2 billion we’re preventing from going to fraudsters is significant. Think about it: that amount is about the yearly healthcare benefits for 550,000 kids. This money, which was intended for essential services, was lined up for those engaged in fraud,” he emphasized.

The vice president stressed the importance of protecting vital safety-net programs under the Affordable Care Act, ensuring that vulnerable populations, particularly low-income children and seniors, continue to receive necessary healthcare.

“These programs are crucial and deserving, but their existence depends on us addressing fraud,” Vance noted.

He further explained that during the administration of former President Joe Biden, independent brokers had incentives to enroll individuals into the Obamacare system, and, unfortunately, the eligibility criteria were loosened.

Under federal regulations, applicants were allowed to “self-attest” their income if there were discrepancies with IRS data, which might have enabled dishonest brokers to inflate income claims to qualify for fully subsidized ACA plans.

“When we have a system where brokers are financially rewarded for enrolling people without proper checks on eligibility, it leads to rampant fraud,” Vance commented.

Moreover, the task force plans to conduct additional reviews of about 419,000 enrollees to ensure they are legal U.S. citizens and meet the necessary income thresholds.

In one significant case, the task force discovered a fraudulent operation involving 40 brokers who had enrolled 50,000 individuals into the system, many of whom were not eligible, or in some cases, didn’t even exist.

“We found a fraud ring that had funneled 50,000 people into the Obamacare system. Many of those people quite literally didn’t even exist,” Vance tweeted after the event.

Dr. Mehmet Oz, Administrator for the Centers for Medicare and Medicaid Services, shared insights on the importance of trust in healthcare systems, noting that fraud impacts health and lives, not just finances.

“Fraud isn’t merely stealing money; it undermines our trust and can actually damage our health,” Oz remarked.

He pointed out that the COVID-19 pandemic had exacerbated healthcare fraud, especially in programs designed to help bridge gaps between poverty and employer-based insurance. He criticized the previous administration for failing to enforce safeguards, leading to a significant uptick in expenses and a doubling of Obamacare enrollment numbers during the pandemic.

“The ACA had 10 million enrollees from 2015 to 2020, but during COVID, it surged to 22 million,” he noted.

Oz also raised concerns about approximately 35% of current enrollees not utilizing the program, signifying potential fraud.

In the last year alone, 1.1 million individuals enrolled in Obamacare without possessing a Social Security number, suggesting significant gaps in oversight.

He recounted a notable fraud case involving Cory Lloyd, who, along with his partner, was implicated in a scheme that fraudulently sought over $233 million in federal subsidies by enrolling vulnerable individuals without proper qualifications.

“These individuals exploited people who were homeless or unemployed, coaxing them into signing up for ACA plans without informing them about the consequences, and then they flaunted their profits,” Oz explained.

The perpetrators reportedly used their ill-gotten gains to buy luxury items, including expensive vehicles and properties. The investigation also revealed their discussions about taking advantage of disaster-stricken individuals.

Lloyd and his partner have faced charges, including conspiracy and multiple counts of fraud, each potentially facing up to 20 years in prison for their actions.