US cuts Obamacare subsidies for 189,000 with duplicate coverage
UNH•The Trump administration said it is cutting off Affordable Care Act subsidies for about 189,000 people identified as having duplicate government coverage or being deceased. Officials estimate the action will prevent $738 million in improper payments this year, or more than $1.5 billion annualized.
1. Subsidies canceled
The administration said it canceled duplicate subsidies for about 120,000 people also enrolled in Medicaid, 58,000 also enrolled in Medicare and roughly 11,000 deceased enrollees through July. Another 3,500 deceased enrollees are expected to be identified by month's end.
2. Coverage and appeals
People with Medicaid or Medicare kept coverage in one program. Flagged enrollees or their estates have 30 days to contest the finding before subsidies stop; officials said no one lost coverage because those affected were already covered elsewhere or deceased.
3. Separate fraud action
The administration said the cuts are separate from its September announcement that it was halting enrollment for more than 760,000 people believed to have been fraudulently signed up for Obamacare plans. Medicaid Director Dan Brillman said the agency found a potential 1.2 million people a month enrolled in Medicaid or CHIP across more than one state; states must verify enrollee addresses starting January 2027.
