GAO Finds High Approval Rates for Fraudulent ACA Subsidy Applications Amid Senate Vote on Extension

A recent Government Accountability Office (GAO) investigation tested the integrity of subsidized marketplace plan applications by submitting 24 fraudulent applications, out of which 23 were approved. This high approval rate highlights significant vulnerabilities in the verification processes for Affordable Care Act (ACA) subsidies. Concurrently, the Senate is set to vote on extending ACA subsidies for an additional three years, a move that reflects ongoing political debate over the cost and management of these subsidies. These expanded subsidies, initially introduced during the pandemic emergency, are scheduled to expire at year-end and have been criticized for potential misuse and escalating costs, projected to reach $350 billion over the next decade.