House Judiciary Committee Probes Obamacare Subsidy Fraud Involving Major Insurers

The House Judiciary Committee and its subcommittees have initiated oversight by sending document requests to major health insurers including Blue Shield of California, Centene, CVS Health, and others. This investigation targets fraud and abuse within Obamacare subsidies, which a recent U.S. Government Accountability Office report found to involve tens of thousands of fraudulent subsidy claims using stolen Social Security Numbers. Key concerns include brokers incentivized to enroll ineligible individuals through misleading practices and income misreporting to fraudulently obtain subsidies. Earlier efforts to curb this fraud, such as a Trump Administration regulation, were blocked by a federal judge for administrative procedural reasons, complicating enforcement efforts. This oversight could impact regulatory and compliance practices for payers and providers concerned with ACA subsidy integrity.