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The Trump administration stripped 189,000 people of ACA subsidies.
Economy
On Wednesday, the Trump administration announced the termination of Affordable Care Act (ACA) subsidies for approximately 189,000 individuals
who were found to have duplicate government insurance coverage or who were deceased. Officials stated that this measure would save taxpayers about $738 million this year.
U.S. Secretary of Health Robert F. Kennedy Jr. reported that the Centers for Medicare & Medicaid Services identified individuals—covered for the 2026 plan year—who were simultaneously receiving subsidized coverage through the federal ACA marketplace and were enrolled in Medicare, Medicaid, or the Children's Health Insurance Program (CHIP). Instances were also identified where subsidies continued to be paid out for deceased citizens.
"When the federal government pays a subsidy for a healthcare.gov plan, we have an obligation to verify that the payment is actually justified," Kennedy said at a press conference. "We certainly cannot continue paying for people who are no longer alive."
The administration projects that this measure will prevent $738 million in improper subsidy payments this year, with the annualized figure exceeding $1.5 billion, Kennedy noted. By the end of the year, the government expects to prevent more than 1 million months of improperly subsidized insurance coverage.
This measure is part of a broad campaign to combat suspected fraud.