House Democrats are set to vote on extending pandemic-era subsidies for the Affordable Care Act (Obamacare) without implementing new reforms. Recent reports highlight concerns about fraud and rising costs associated with these subsidies.
A Government Accountability Office (GAO) report released last month found that federal Obamacare subsidies have been paid out to fake identities, duplicate Social Security numbers, and even deceased individuals across the country. According to the GAO, all of its test applicants using false information were approved for coverage in late 2024. “18 of 20 fake applicants remain enrolled and subsidized in 2025,” the report states. It also noted that coverage was approved without proper documentation or with falsified documents, and brokers were able to enroll applicants by contacting call centers on their behalf. The GAO reported that more than $12,300 per month was paid for these fake identities.
The issue extends beyond just identity verification. The GAO found that “58,000 SSNs receiving subsidies matched to deceased individuals” and “7,000 deaths occurred before coverage began.” Insurers received $94 million in payments for enrollees who had already died.
Minnesota’s experience with federally funded programs illustrates how such issues can arise when oversight is lacking. Prosecutors allege widespread fraud across 14 state-run Medicaid programs in Minnesota, potentially totaling over $9 billion in losses since 2018. The federal government covers about 64% of Minnesota’s Medicaid costs.
The Working Families Tax Cut has been introduced as a measure aimed at reducing waste, fraud, and abuse in programs like Medicaid while maintaining support for those most in need.
Rising costs are another concern highlighted by independent analysis of insurers’ filings. In 2024, taxpayers covered nearly 80% of premiums for subsidized Obamacare plans—up from 30% in 2014—with direct payments to insurers reaching $114 billion in 2024 alone. This figure is more than double pre-pandemic levels and six times higher than amounts seen a decade ago. The Congressional Budget Office notes this trend continued into 2025.
House Republicans have responded by passing the Lower Health Care Premiums for All Americans Act, which they say will lower premiums responsibly through funding cost-sharing reduction payments starting in 2027 to stabilize the individual market. The bill also aims to increase transparency around drug pricing and expand affordable coverage options for workers and small businesses.
Republicans argue their approach addresses systemic problems rather than extending existing subsidies without added safeguards. “Democrats want to extend a broken system as-is,” they stated. “Republicans are fixing what’s broken.”
Mike Johnson is currently serving in the U.S. Congress representing Louisiana’s 4th district after replacing John Fleming in 2017. He previously served in the Louisiana House of Representatives from 2015 to 2017 and was born in Shreveport, Louisiana.
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