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NewsThe Trump administration has removed health subsidies for 189,000 people on the ACA exchanges, citing duplicate Medicaid/Medicare enrollments and deceased beneficiaries. CMS says the move will save $738 million in improper payments this year, with another 3,500 removals expected by month's end. Officials stress no one is losing coverage — only fraudulent or erroneous subsidies are being cut.
The Trump administration has pulled health subsidies for 189,000 Affordable Care Act enrollees after identifying duplicate coverage with Medicaid or Medicare, as well as enrollees who were deceased. CMS Administrator Mehmet Oz emphasized that no one is losing health insurance — rather, the government is eliminating improper payments. Officials plan to remove subsidies for an additional 3,500 people before the end of October.
This is part of a broader crackdown on the ACA exchanges under the Trump administration's "fraud, waste and abuse" initiative. Last year, about 551,000 enrollees had subsidies revoked for duplicate Medicaid enrollment, and late last month, coverage was terminated for over 760,000 people whose enrollment was deemed unauthorized.
By the Numbers:
Why it matters: The ACA exchanges are already under strain after enhanced subsidies lapsed last year, causing premiums to spike and roughly 1 in 10 enrollees to drop coverage. This latest round of subsidy cuts adds further turbulence to a marketplace that millions of Americans depend on for affordable health insurance.