Vance said the discovery and canceled subsidy payments for hundreds of thousands of people from the exchanges, part of an administration-wide crackdown on fraud, would result in $2.2 billion in cost savings.

“We’re actually making sure that the people receiving Obamacare subsidies are actually entitled to receive them,” said Vance, who leads a government task force to eliminate fraud. He was flanked by Dr. Mehmet Oz, the administrator for the Centers for Medicare and Medicaid Services, or CMS, and other administration officials.

Vance said the cancellation of approximately 315,000 enrollments covering 760,000 people was done in part because the government was not checking whether people enrolled were eligible. Vance said another 419,000 enrollments will get additional verification to make sure they are eligible for the benefit.

The Trump administration also announced a six-month suspension on new agents or brokers who sign up enrollees for healthcare coverage, who officials say commit a disproportionate amount of the fraud they uncovered.

Roughly 19.2 million Americans are actively enrolled in ACA marketplace health plans as of early 2026, according to the HHS website.

Tuesday’s announcement is the latest in an initiative by the Trump administration to address fraud around the country, including in federal healthcare programs, which officials say is needed to rein in runaway spending and protect taxpayers.

The announcement comes as stubbornly high inflation and rising healthcare costs pressure the Trump administration to come up with a plan to bring down costs for Americans as affordability remains a central issue in the fall midterm elections.

The price of ACA insurance has skyrocketed for many Americans during Trump’s second term, after Republicans opposed extending COVID-era subsidies that had helped offset the costs of health insurance for most enrollees during Biden’s term.

Premiums doubled or tripled for many enrollees, prompting millions to downgrade their plans or exit the program entirely after the Republican-led Congress allowed the subsidies to expire this year.

The Government Accountability Office suggests fraud risks in the advance premium tax credit do exist – however it’s unclear at what scale. The GAO conducted covert testing using fictitious ACA applicants enrolled in 2024 and 2025. A report released in December showed that the federal marketplace approved subsidized coverage for almost all of the GAO’s 24 fake enrollees.

The White House referred The Associated Press to the Vice President’s team for additional comment on bigger plans to address healthcare affordability. The Vice President’s office and CMS did not respond to Associated Press requests for comment.

The Wall Street Journal first reported the news of the Trump administration’s plan to remove ACA enrollees from public exchanges.

Democratic lawmakers criticized the move to remove enrollees from ACA coverage.

Richard E. Neal, a Massachusetts Democrat and ranking member of the Ways and Means Committee, said “Republicans have already created the worst healthcare crisis ever, but every decision by the Trump Administration is designed to keep making it worse.”

“As if making coverage harder to access through skyrocketing premiums and more red tape wasn’t painful enough, they’re doubling down to take it away entirely,” Neal said.

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Associated Press White House reporter Michelle Price contributed to this report.