Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. and Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz revealed Saturday that more than one million enrollees in the Affordable Care Act (ACA) marketplace do not have Social Security numbers (SSNs) linked to their coverage. The announcement, made in a video released on June 27, 2026, signals an intensified federal scrutiny of enrollment integrity within the federal health exchange system. Officials stated that ongoing efforts are in place to remove these improper enrollments and recover taxpayer funds.
"The Obamacare marketplace is plagued by fraud in large part because the Biden administration dismantled basic program integrity guardrails, while partisan lawfare blocked common sense efforts to protect taxpayers." — Robert F. Kennedy Jr., HHS Secretary
An extensive HHS review of ACA enrollment data has identified millions of questionable marketplace enrollments, including those deemed improper, phantom, or fraudulent. Agency estimates project the total number of such enrollments could reach approximately 5.6 million by 2025. The department indicated that fraudulent activity has contributed to an estimated $10 billion in annual taxpayer costs between 2021 and 2024. To date, nearly 3 million questionable enrollments have already been removed, with millions more anticipated for review in the coming months.
Secretary Kennedy attributed the findings to what he described as weakened oversight measures under the previous administration. "The Obamacare marketplace is plagued by fraud in large part because the Biden administration dismantled basic program integrity guardrails, while partisan lawfare blocked common sense efforts to protect taxpayers," Kennedy stated, according to American Almanac. He further questioned the legitimacy of payments made for individuals with incomplete identity records, asking, "Why are we paying people we don’t know if they actually exist?"
Dr. Oz elaborated on what investigators suspect are multiple sophisticated schemes involving marketplace enrollments. He described scenarios where some insurance agents allegedly utilized stolen personal data or created fabricated identities to enroll individuals in coverage that required no monthly premium. This allowed agents to collect commissions while the individuals remained unaware that policies had been issued in their names. Oz underscored that many of these applications were notably missing Social Security numbers, characterizing this absence as "a huge red flag" for fraudulent activity.
In response to these findings, administration officials confirmed that new safeguards were introduced in May. These measures now mandate that agents submit government-verified information before commissions can be disbursed for marketplace enrollments. Secretary Kennedy affirmed that HHS is actively collaborating with insurance providers to cancel policies identified as improper and to reclaim taxpayer funds associated with those enrollments. CMS officials reiterated that enforcement actions will persist as additional marketplace enrollments undergo review in preparation for the upcoming open enrollment period.
While the Trump administration has not yet identified specific insurance agents, brokerages, or companies allegedly involved in the reported fraudulent activities, the broader review is continuing. Officials have also not yet detailed the precise methodology used to identify the more than one million enrollments lacking Social Security numbers, nor have they provided a full accounting of the funds recovered thus far. HHS has stated that thousands of fraudulent policies have been eliminated as part of the ongoing, comprehensive review.
This announcement aligns with the President Trump administration's broader initiative to expand fraud enforcement across various federal health programs. According to projections from the Congressional Budget Office (CBO), programs such as Medicare, Medicaid, premium tax credits, and the Children’s Health Insurance Program are estimated to cost over $1.9 trillion in fiscal year 2026. Officials emphasize that the current review is an integral component of a wider effort to strengthen oversight and program integrity across all federal health insurance programs, as enrollment data continues to be rigorously audited.
