The US Centers for Medicare & Medicaid Services said Tuesday, September 22, that it had canceled about 315,000 Affordable Care Act marketplace enrollments covering more than 760,000 people. The agency said it confirmed the enrollments were unauthorized after reviews with insurers. It expects to recover about $2.2 billion in federal premium subsidies, a projection rather than money already recovered.
The cancellations took place on August 31, according to a CMS fact sheet released Tuesday. The distinction between enrollments and people matters: a single health plan enrollment can cover several members of a household. Vice President JD Vance presented the action in Washington as part of the administration’s campaign against improper spending in federal health programs.
CMS said it and insurance companies investigated suspected unauthorized sign-ups under existing procedures before canceling the affected enrollments. Reuters reported that Vance described the group as including both people who did not meet eligibility rules and people allegedly enrolled without their knowledge. The agency has not published a case-by-case account of the 760,000 people in its announcement.
The agency also announced a temporary halt on new marketplace broker registrations for the 2027 plan year for brokers without an active agreement for 2026. It said it had issued 569 notices of intent to terminate broker agreements over applications lacking key identifying information. Those notices are part of an enforcement process and are separate from the enrollment cancellations.
The action comes as insurance costs and access to coverage remain politically contested. Reuters reported that a broker trade group warned a broad registration freeze could penalize legitimate agents, while an analyst said it could reduce enrollment. CMS says the restrictions are intended to prevent unauthorized sign-ups and protect consumers and public funds.
CMS said it would keep working with insurers to investigate suspected unauthorized enrollments and reclaim associated subsidies. Before the next open-enrollment period, it plans to require electronic consumer authorization for broker actions and to provide agents and consumers with information about the new safeguards. The actual amount recovered and any effect on legitimate enrollment remain to be seen.
Comments