Concerns are being raised about potential fraud in the Obamacare health insurance program, as reportedly 1 million accounts have no corresponding Social Security number. It is estimated that around 2.6 million people have fraudulently enrolled in Obamacare plans this year.
Secretary of Health and Human Services Robert F. Kennedy said Obamacare is “plagued by fraud” during a June 27 video. They blamed the Biden administration and “partisan lawfare” for enabling the fraud.
The lack of Social Security numbers is a “glaring warning sign of fraud,” Kennedy said.
Dr. Mehmet Oz, the administrator of the Centers for Medicare & Medicaid Services, blamed insurance agents for gaming the system.
“They submit applications for fake people, enroll stolen identities, all to collect millions of dollars in improper fees from insurance companies for ‘selling plans’ they never legitimately sold,” Dr. Oz said.
Kennedy explained how the “fraudsters” intentionally pick zero premium plans so that the enrolled never see a bill and never raise questions.
Oz said that insurance agents must now provide Social Security numbers for enrollees. Kennedy said they have stopped thousands of potential fraudulent enrollments and are trying to cancel current plans that may be fraudulent.
“If you steal from the American taxpayer, or if you defraud American families, HHS will find you, and we will hold you accountable,” Kennedy warned.
https://x.com/SecKennedy/status/2070840412999188623?ref_src=twsrc%5Etfw
Obamacare has been rife with fraud, as is expected with any government program that includes lucrative subsidies.
A report from the Paragon Health Institute estimated that about 6 million enrollees in Obamacare in 2026 were fraudulent. “These improper enrollments could lead to as much as $25 billion in improper subsidy expenditures in 2026, nearly one-quarter of projected federal exchange subsidy spending,” the think tank reported. (A June 26 report from Health and Human Services similarly estimated there were 5.6 million “improper, phantom and fraudulent” enrollees in 2025).
Like Kennedy and Oz, the think tank warned of “phantom enrollees.”
“In 2024, 35 percent of exchange enrollees and 40 percent of fully-subsidized low-income enrollees generated no medical claims—double the percentage expected in a normal health insurance market,” the think tank found.
A 2025 Government Accountability Office report found “large-scale failures,” including “fake identities,” “stolen Social Security numbers,” as well as “incorrect income estimates” for recipients of Obamacare subsidies, according to Senator Mike Crapo (R-ID).
The June 26 report from the Trump administration estimated there are currently 2.6 million fraudulent applications overall.
“The Trump Administration remains committed to aggressively rooting out waste, fraud, abuse, and corruption to protect Americans from unscrupulous brokers using their information to secure payments from the federal government and safeguard the program’s long-term stability for those that depend on it,” the report on Obamacare enrollment concluded.
Matt Lamb currently works as an associate editor for The College Fix. He also contributes to a variety of websites, including Legal Insurrection, Human Life Review, and AMAC Newsline. His work has been published by The Federalist, Townhall, and The Daily Caller. He has worked for Students for Life of America and Turning Point USA.
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