Trump Admin Cancels Subsidies for 750k ACA Accounts Amid Fraud Allegations
The Trump administration has announced plans to remove hundreds of thousands of people from the Affordable Care Act public exchanges due to allegations of fraud. According to Vice President JD Vance, the White House Task Force to Eliminate Fraud will cancel subsidy payments for 750,000 individual accounts in ACA exchanges.
The administration alleges that these enrollments were unauthorized and fraudulent, targeting people who are unaware of their enrollments or have employer-provided healthcare and are therefore ineligible for the program. The cancellations are expected to save $2.2 billion in taxpayer money.
UnitedHealth (UNH), Centene (CNC), Cigna (CI), Elevance Health (ELV), Oscar Health (OSCR), and CVS Health (CVS) are among the leading operators in the ACA Marketplace, which have traded lower on Tuesday following the announcement. The administration also plans to remove hundreds of brokers and agents who wrongly signed ACA enrollees for government healthcare.