US halts Obamacare enrollment for over 760,000 enrollees, claiming fraud
XLV•Insurers and advocates warn of enrollment disruption
The freeze could weigh on insurers that rely on brokers to sign up customers, analysts said.
Because brokers are key to how people enroll, the freeze "may negatively affect enrollment and potentially margins related to higher risk pool in a market that is already contracting" as enhanced subsidies expire, said Morningstar analyst Julie Utterback.
A blanket moratorium "would punish legitimate professionals instead of targeting the bad actors responsible for fraud," said Mychal Walker, president of the National Association of Benefits and Insurance Professionals, a trade group that urged CMS to adopt targeted safeguards instead.
CMS said unauthorized Obamacare enrollments could cost up to $6.6 billion in improper federal spending for the 2026 plan year.
CMS said it expects a return of about $2.2 billion in advance payments of the premium tax credit for the canceled enrollments. Oz said the figure would climb, calling it "the tip of the iceberg."
