Obamacare Fraud Bombshell: GAO Report Exposes Billions in Questionable Subsidies

A new Government Accountability Office report has delivered a serious blow to former President Barack Obama’s signature health care law, revealing what investigators describe as massive, systemic fraud within Obamacare. The findings are reigniting debate in Washington just as Democrats push to extend costly subsidies.

According to the GAO, more than $21 billion in Affordable Care Act subsidies may have been improperly paid out in 2023 alone. Investigators uncovered payments linked to fake identities, invalid Social Security numbers, duplicate enrollments, and even tens of thousands of deceased individuals—raising alarms about oversight failures inside the federal marketplace.

To test vulnerabilities, GAO officials created 20 fictitious applicants and submitted them to the ACA exchange. Eighteen were approved and remained actively insured months later, collectively receiving over $10,000 per month in subsidies—despite failing to provide requested documentation and using invalid Social Security numbers.

The report also found widespread “double-dipping,” with tens of thousands of Social Security numbers used multiple times to receive overlapping coverage. Federal officials acknowledged the system does not prohibit multiple enrollments per number, a policy critics say effectively invites identity theft and fraud.

Republican lawmakers argue these findings confirm long-standing warnings. Senator Marsha Blackburn cautioned as early as 2013 that self-attestation for eligibility would lead to abuse. Senator Roger Marshall now estimates total fraud could reach $25 to $35 billion annually, describing many enrollees as “ghost patients” who never even filed insurance claims.

Despite the revelations, Democrats continue to push for extending enhanced Obamacare subsidies that cost an estimated $30 billion per year. Critics argue that eliminating fraud alone could offset much of that expense, making new spending unnecessary without stronger safeguards.

Republicans have introduced legislation requiring identity verification, modest monthly payments, and additional enrollment checks. However, lawmakers say they have been unable to secure a single Democratic co-sponsor, fueling accusations that political priorities outweigh fiscal responsibility.

As subsidy deadlines approach and oversight questions mount, Obamacare once again finds itself at the center of a national controversy. With billions in taxpayer dollars at stake, the GAO report ensures the debate over health care reform, fraud prevention, and accountability is far from over.