Working families will no longer be forced to foot the bill for fraudsters thanks to The One, Big, Beautiful Bill, which clamps down on Democrats’ reckless approach to Obamacare subsidies that has increased the cost of health care for all. Rather than address the root causes of price increases, years of Democrats’ inflationary spending and enrollment-at-any-cost rulemaking shoveled more taxpayer dollars into Obamacare premium tax credits and fueled widespread fraud. In 2024 alone, as many as 6.4 million individuals were fraudulently enrolled in Obamacare plans, costing taxpayers up to $27 billion, according to new research. The One, Big, Beautiful Bill creates common sense verification requirements that prevent fraudsters and illegal immigrants from receiving these generous subsidies.

Ways and Means Chairman Jason Smith (MO-08) issued the following statement:

“Obamacare subsidies have become a magnet for fraud with billions of tax dollars going to ineligible individuals, and even illegal immigrants. This broken system rewards abuse while working Americans foot the bill. The Trump administration has signaled they are ready to work with Congress to restore program integrity and tamp down on waste, fraud, and abuse. Now it is up to Congress to pass President Trump’s One, Big, Beautiful Bill as quickly as possible to put an end to this disaster, implement common sense guardrails, and put working Americans back at the center of our health system.”

Background:

• In 2024 alone, as many as 6.4 million individuals were fraudulently enrolled in Obamacare plans, costing taxpayers up to $27 billion.
• DOJ has uncovered extensive fraud — exposing schemes worth $133 million in Florida and $161 million in Texas targeting the most vulnerable.
• The One, Big, Beautiful Bill implements common sense verification requirements and lowers premiums – saving families over $300 each:
  • The bill requires individuals to be fully verified for Obamacare premium tax credit eligibility before receiving such credits.
  • The bill removes Biden-era anytime enrollment rule that encourages fraud and increases premiums for families.
  • The bill ensures individuals who misreport their income repay the entire amount of excess subsidy they receive.
• The bill also includes provisions that eliminate Obamacare and Medicare benefits for illegal immigrants, ensuring taxpayer-funded health benefits go to eligible recipients.
• In total, the bill’s Obamacare and Medicare program integrity provisions end $185 billion in waste, fraud, and abuse in taxpayer-funded premium tax credits.
• On June 20, 2025, the Centers for Medicare and Medicaid Services issued a final rule instituting safeguards to protect against fraud and waste in Obamacare. This action follows June 28, 2024 letters from Ways and Means Chairman Smith to the HHS Office of Inspector General and Government Accountability Office calling attention to reports of widespread fraud in the Obamacare marketplace.

Read more about The One, Big, Beautiful Bill here.