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Damning Watchdog Report Reveals 'Large-Scale Systemic Failures' Leading to Obamacare Subsidy Fraud
Townhall ^ | 12/06/2025 | Amy Curtis

Posted on 12/06/2025 8:34:03 PM PST by SeekAndFind

Earlier this year, when Elon Musk's Department of Government Efficiency (DOGE) began reporting on massive amounts of fraud in our social programs, the Democrats scoffed at him. They ran before any camera they could find to claim breathlessly that Musk was going to take away Social Security and leave Grandma out in the cold.

That's not true, of course. Musk and DOGE were trying to not only save America from fiscal ruin, but to make these programs sustainable for the people who actually need and paid into them — the American taxpayers.

Democrats, on the other hand, seem to view those programs as ones that are not only open to non-Americans but also sources of massive fraud that enrich Somali immigrants and support Islamic terrorism in Africa. The blunt reality is this: America is going to go broke if we don't control spending, and control it soon.

Stopping widespread fraud is a good first step to controlling spending, and there's massive fraud in Social Security and subsidized healthcare, according to a watchdog investigation.

BOMBSHELL: A new watchdog investigation found large-scale systemic failures that allow fake identities, dead people, and massive improper use of Social Security numbers to receive Obamacare subsidies.

GAO conducted covert operations which included creating fictitious identities.…— Rep. Jason Smith (@RepJasonSmith) December 3, 2025

The entire post reads:

GAO conducted covert operations which included creating fictitious identities. In fact, 100% of fake applicants were approved by Obamacare's marketplace as recently as late 2024. 90% of fake applicants continue to receive coverage in 2025.

The result: Wasteful federal spending on subsidies for enrollees who are not eligible. Harm and unexpected costs for consumers. Loss of access to medical providers and medications, higher copays and deductibles, or forced repayment.

Specifically, one Social Security number was repeatedly used to get subsidized healthcare for more than 70 people, and authorities just couldn't be bothered to figure out who the real person was.

Here's what the report says:

One issue that can hinder reconciliation of APTC through tax filing is use of an SSN that does not belong to the enrollee. Our preliminary analysis of federal Marketplace data identified over 29,000 SSNs (0.21 percent of SSNs that received APTC) with more than 365 days of insurance coverage with APTC in plan year 2023. For example, the most frequently used SSN in plan year 2023 was used to receive subsidized insurance coverage for over 26,000 days (over 71 years of coverage) across over 125 insurance policies. Further, our preliminary analysis identified nearly 66,000 SSNs (0.37 percent of SSNs that received APTC) with more than 366 days of insurance coverage with APTC in plan year 2024.⁽³⁶⁾ This overuse can occur because of identity theft and synthetic identity fraud, as well as data entry errors.⁽³⁷⁾ Given complexities around identifying the true SSN-holder, we are further examining these cases and other instances of apparently overlapping coverage as part of our ongoing work.

According to CMS officials, the federal Marketplace does not prohibit new enrollments that use an SSN that is already enrolled. They further explained this is done to help ensure that the actual SSN-holder can enroll in insurance coverage in cases of identity theft or data entry errors. These officials told us that the federal Marketplace uses a logic model that analyzes various elements of personally identifiable information to distinguish individual applicants and enrollees. They added that they apply this model on a monthly basis to deduplicate enrollments. Further, applications with SSNs already enrolled should be addressed through CMS’s existing data matching inconsistency processes, where applicants provide documentation to support application information that could not be originally verified.

For example, enrollees with these overused SSNs should be identified through CMS’s existing data matching inconsistency processes and required to submit documentation to substantiate their SSNs. This is because multiple identities with different personally identifiable information will not match SSA records for the same SSN. However, our analyses and identification of enrollments with these overused SSNs suggests that the data matching inconsistency processes may not always function as expected. We are reviewing the federal Marketplace’s data matching inconsistency processes, including overused SSNs, as part of our ongoing work.

In the age of computers and AI, there's no reason officials can't identify the real person and cut off the fraudsters. It's laziness and apathy.

And it gets worse.

This is absolutely incredible.

That's what the Democrats tell us.

At least that would be entertaining and honest.

Using taxpayers' money judiciously is never on the radar.



TOPICS: Crime/Corruption; Culture/Society; Government; News/Current Events
KEYWORDS: democratcorruption; democratincompetence; democrats; fraud; healthcare; medicare; obamacare; pelosicrimefamily; r; spendingaccounts
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1 posted on 12/06/2025 8:34:03 PM PST by SeekAndFind
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To: SeekAndFind

“That wasn’t fraud. That was a feature.”


2 posted on 12/06/2025 8:35:22 PM PST by OrangeHoof (Always spay or neuter your liberal.)
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To: SeekAndFind

So it worked exactly as intended then.

L


3 posted on 12/06/2025 8:35:46 PM PST by Lurker ( Peaceful coexistence with the Left is not possible. Stop pretending that it is.)
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To: SeekAndFind

US Gov’t Fraud and Abuse?

Who knew?

[Congress, I’m looking at Choo.]


4 posted on 12/06/2025 8:38:54 PM PST by Paladin2 (YMMV)
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To: SeekAndFind

Like so many of the government programs coming out of DC, it’s becoming more obvious that they are designed first and foremost to be a money pit to be looted by the DC criminals who created them and voted to fund them, thus leaving the taxpayers to ask “where did all of the money go?” Any and all American public officials should not be allowed to own a bank account in any institution in another country. If they do, those accounts should be subject for immediately confiscated by the US Treasury.


5 posted on 12/06/2025 8:53:12 PM PST by drypowder
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To: SeekAndFind

This kind of shit pisses me off.


6 posted on 12/06/2025 9:04:22 PM PST by NavyShoe
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To: SeekAndFind

“Earlier this year, when Elon Musk’s Department of Government Efficiency (DOGE) began reporting on massive amounts of fraud in our social programs”

I’ll always remember the arrests of all those thousands of identified fraudsters!

Oh wait...


7 posted on 12/06/2025 9:06:28 PM PST by DesertRhino (When men on the chessboard, get up and tell you where to go…)
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To: SeekAndFind

In a typical Rat brain, this will never register.


8 posted on 12/06/2025 9:24:48 PM PST by Track9 (Liberal tears make me smile. Thank you DJT!)
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To: Lurker

Glad to see people here get it.

All about bringing Single-Payer, and even a lot of “Conservatives” will demand it.


9 posted on 12/06/2025 9:26:40 PM PST by dfwgator ("I am Charlie Kirk!")
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To: All

The semblance of healthcare fraud to Democrats’ voting fraud MO is stunning.......faked SSNs, multiple identities with different personal information, info that does not match SSA records for the same SSN, applicants/voters providing documentation that cannot be verified.......and so on.


10 posted on 12/06/2025 10:04:38 PM PST by Liz ("Socialism is a wonderful idea. It's just that it's been disastrous" Thomas Sowell. )
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To: OrangeHoof; Lurker

EXACTLY!!!

‘They’ don’t pass a massive law like that unless there is some way for them (and/or their friends) to steal lots of dough from it.

And if they can make the lives of ‘the little people’ a little more miserable from it, well, that’s just icing on the cake.


11 posted on 12/06/2025 10:25:07 PM PST by LegendHasIt
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To: LegendHasIt

“This is a big F-ing deal.” [And remember, the big guy gets 10%]


12 posted on 12/06/2025 10:27:02 PM PST by 21twelve (Ever Vigilant - Never Fearful)
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To: SeekAndFind

Where is the money going? To the state or to the insurance company. I know that my wife’s health insurance is subsidized, but we don’t see that money. It only reduces the amount of money we pay the insurance company each month.

But we have to go through the state’s website for insurance - so I’m not sure who actually see’s that subsidy.

Stuff like this in my mind is treason, breaking the USA’s financial back. They should be tried for treason and face the punishment.


13 posted on 12/06/2025 10:32:44 PM PST by 21twelve (Ever Vigilant - Never Fearful)
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To: SeekAndFind

Ihlan would have smirked and said: “It was a good system but there weren’t enough guardrails.”


14 posted on 12/06/2025 10:33:53 PM PST by frank ballenger (There's a battle outside and it's raging. It'll soon shake your windows and rattle your walls. )
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To: SeekAndFind
At least 10 years ago, the news reported on weekly flights to Somalia from Minneapolis.
The bastards carried suitcases full of cash. Government knew, and didn't do anything.

If I had the chops and the LexisNexis account, I could find the references to this long time fraud
committed against the American people by Somalians. Somebody should resurrect that investigation.

15 posted on 12/06/2025 10:46:35 PM PST by Governor Dinwiddie ( O give thanks unto the Lord, for He is gracious, and his mercy endures forever. — Psalm 106)
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To: NavyShoe
It pisses me off because there are tens of thousands of Americans in the prairies and hollers who freeze
and struggle to feed their families and heat their homes while the Somalians stick it to us
good and hard.

16 posted on 12/06/2025 10:50:06 PM PST by Governor Dinwiddie ( O give thanks unto the Lord, for He is gracious, and his mercy endures forever. — Psalm 106)
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To: SeekAndFind


I can't imagine why it failed.
17 posted on 12/06/2025 11:25:21 PM PST by SpaceBar
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To: SeekAndFind

The fraud wasn’t a bug, it was a feature.


18 posted on 12/06/2025 11:34:20 PM PST by E. Pluribus Unum (I have no answers. Only questions.)
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To: SpaceBar

Is there a link to this graphic that makes it readable?l


19 posted on 12/06/2025 11:43:08 PM PST by antceecee ( )
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To: SeekAndFind

planned


20 posted on 12/07/2025 2:30:01 AM PST by ronnie raygun
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