CMS cancels 760,000 ACA enrollments over fraud

The Centers for Medicare & Medicaid Services (CMS) has canceled approximately 315,000 unauthorized enrollments in the federal Affordable Care Act (ACA) health insurance marketplace. These cancellations, which took effect on August 31, affect more than 760,000 people. Through this action, the agency expects to recover roughly $2.2 billion in advanced premium subsidy payments.

The unauthorized enrollments were identified following reviews by CMS and health insurers. The fraud often involves rogue agents or brokers enrolling individuals in subsidized plans without their consent to collect commissions. Some schemes utilize social media advertisements promising direct cash subsidies, which do not exist under the ACA system.

In response, CMS has implemented a temporary registration moratorium for agents and brokers seeking to participate in the 2027 federal marketplace if they lack a 2026 exchange agreement. HHS Secretary Robert F. Kennedy Jr. stated that the agency is strengthening safeguards and holding brokers accountable for breaking rules.