Trump Saves Billions in New Fraud Crackdown

The Trump administration is cracking down on waste by stopping duplicate Medicaid and Obamacare enrollments.

The Centers for Medicare & Medicaid Services uncovered 189,000 individuals on Obamacare rolls who are either deceased or improperly receiving “double coverage” subsidized by taxpayers through Medicaid, Medicare, or Children’s Health Insurance Program. The agency said it acted promptly to remove double enrollees.

“On records showing enrollees had died, CMS acted to remove improper subsidies in all of these cases,” Health and Human Services Secretary Robert F. Kennedy Jr. said. “CMS estimates that this work will prevent $738 million in improper subsidy payments this year alone. At an annualized rate, this savings exceeds $1.5 billion.”

No American will lose coverage in the process, Kennedy said. Every individual has been contacted to confirm duplicate enrollment before stopping any Obamacare subsidies.

“We’re not cutting people from Medicaid or Medicare or Obamacare or medical coverage,” he said. “People who are double enrolled or people who are deceased, for that matter, are not gaining anything from that double enrollment, and they don’t even know it in most cases, that they’re double enrolled, there’s no advantage to them of being double enrolled.”

If any individual responds within 30 days that they do not have duplicate coverage, CMS will not end their Obamacare subsidies. If individuals respond after that time, they may still appeal the determination or show that their Medicaid coverage is about to lapse.

“No patient was benefitting from this,” Federal Trade Commission Chairman Andrew Ferguson said. “Rich insurance companies and unscrupulous brokers were the only beneficiaries of this. That is fixed today.”

The announcement builds on last year’s review that exposed 551,000 Americans enrolled in both Medicaid and ACA exchange plans, an administration official said.

“In 2025, the Biden Administration left a backlog of nearly 550,000 duplicate Medicaid and Obamacare enrollments,” Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz said at a Wednesday press conference. “By clearing this backlog, the Trump administration saved nearly $4.4 billion.”

“This move guarantees no American loses coverage, while eliminating waste, fraud, and abuse,” White House spokeswoman Allison Schuster said. “On top of the $500 Obamacare Refund checks and the $90 Medicare checks sent out over the last two weeks, President Trump continues to deliver on the mandate to stop fraud and put money back in the pockets of hardworking Americans.”

The White House announced in September it would mail refunds of $500 per person to nearly 1 million Americans in 30 states for Obamacare overcharges. Trump also offered one-time payments of $90 per person to help about 20 million seniors pay for their Medicare Part B premiums.

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