Key facts
- The US Centers for Medicare & Medicaid Services canceled 315,000 Obamacare health plans last month.
- The cancellations were due to unverified citizenship or immigration documentation and suspected improper enrollments.
- Approximately 760,000 people were covered by the canceled plans.
- The agency will bar 569 brokers for submitting statistically implausible rates of plan year 2026 applications.
- These brokers allegedly submitted applications without applicant information such as a Social Security Number.
The US Centers for Medicare & Medicaid Services announced on Tuesday that it had canceled 315,000 Obamacare health plans, affecting approximately 760,000 individuals. The cancellations were attributed to unverified citizenship or immigration documentation and suspected improper enrollments. This action was disclosed in rulemaking documents published in the US Federal Register.
In addition to the plan cancellations, the agency stated it would bar 569 brokers who allegedly submitted a statistically implausible number of applications for the 2026 plan year without essential applicant information, such as a Social Security Number. These brokers are accused of submitting applications that lacked necessary details.
The Affordable Care Act, also known as Obamacare, was established under Democratic President Barack Obama and offers income-based subsidies. Republican President Donald Trump attempted to repeal the law during his first term and has proposed changes to reduce the comprehensiveness of the plans.
Recent data indicates a significant drop in Affordable Care Act enrollment. According to a Department of Health and Human Services report, approximately 19.2 million people were enrolled in ACA exchanges in February 2026, down from 23.1 million who selected plans by January 2026. This decline follows the expiration of enhanced Covid-era subsidies, which led to a substantial increase in premiums for many consumers. Experts suggest that the price jump, rather than solely fraud, is the primary driver of enrollment loss, with average costs for continuing enrollees soaring by 114% in 2026. The Department of Health and Human Services also cited efforts to crack down on improper signups, noting that nearly half of ACA enrollment growth between 2021 and 2024 was suspected to be improper, phantom, or fraudulent.