Vice President JD Vance announced the removal of more than 750,000 enrollees from the Affordable Care Act marketplaces on Tuesday, claiming many received premium subsidies they did not qualify for or were not real people. The administration estimates this action will save the government $2.2 billion. The purge represents about 4 percent of the 19 million Americans who receive coverage through the Obamacare exchanges.

Vance leads an anti-fraud task force that has also withheld billions in Medicaid funding from Minnesota and California, drawing criticism from governors who view the efforts as politically motivated. Dr. Mehmet Oz, CMS administrator, defended the removals, stating the administration is ensuring only eligible individuals receive benefits. He highlighted fraudulent broker rings, including two Florida brokers who bribed homeless individuals to enroll in plans for commissions, both sentenced to 20 years in jail in February. The administration plans further research on an additional 440,000 people who may also fall into ineligible categories.

People earning more than four times the poverty limit, around $64,000 for a single person, are ineligible for subsidies, while those below the federal poverty limit, around $16,000 annually, were intended to obtain coverage through Medicaid expansion. Researchers from the Government Accountability Office previously completed fraudulent enrollments using forged documents. The Trump administration recertified brokers previously decertified by the Biden administration.

Enrollment in ACA market coverage sold in the Affordable Care Act marketplaces continues under ongoing review.