Republican Bill Targets Fraud and Abuse in Obamacare to Save $106B

The One Big Beautiful Bill Act, proposed by Republicans, aims to enhance the integrity and stability of Obamacare by addressing longstanding issues of fraud, waste, and abuse. It proposes a return to a more restricted open enrollment period on HealthCare.gov, limiting it to six weeks between November 1 and December 15, thereby preventing consumers from exploiting the system through extended special enrollment periods. The bill seeks to restore the special enrollment period's original intent, which is to accommodate individuals undergoing significant life changes, such as marriage or job loss, rather than broad income-based qualifications without verification.

Additionally, the bill emphasizes stricter income verification for premium subsidies under Obamacare. Currently, subsidies are awarded based on self-reported income without adequate government verification, creating opportunities for improper enrollment and significant financial losses. Research estimates that up to 6.4 million individuals could be improperly enrolled in marketplace plans, resulting in approximately $27 billion in unjustified subsidies. By reinforcing verification procedures, the bill aims to curb this fraud and secure taxpayer savings.

While opponents of the bill warn of increased uninsured numbers, with the Congressional Budget Office projecting a potential rise of 10.9 million uninsured Americans by 2034, proponents argue that many losing coverage under the proposal are benefiting from unverified subsidies. The bill therefore encourages proper enrollment aligned with legislative intent and aims to achieve over $106 billion in federal savings.

These reforms do not seek to repeal the Affordable Care Act but intend to enforce its provisions more rigorously to reduce abuse and improve market stability. The proposal's focus on compliance and regulatory enforcement reflects broader efforts to manage risk and control program costs within the health insurance marketplaces.