The Trump administration announced on Tuesday, Sept. 22, 2026, that it is halting enrollment for more than 760,000 people in Affordable Care Act (ACA) health plans. Vice President JD Vance said the move is an anti-fraud measure intended to save an estimated $2.2 billion in taxpayer funds.
The action follows a series of cancellations led by a federal anti-fraud task force, which includes Health Secretary Robert F. Kennedy Jr., Centers for Medicare & Medicaid Services (CMS) Administrator Mehmet Oz, and Federal Trade Commission Chairman Andrew Ferguson. Last month, CMS canceled approximately 315,000 plans, citing unverified citizenship or immigration documentation and suspected improper enrollments. The agency is now moving to verify the eligibility of an additional 419,000 to 450,000 enrollees regarding their residency and income.
As part of this effort, the administration is imposing an immediate, industry-wide freeze on new broker registrations through Feb. 1, 2027. CMS officials stated they will bar 569 brokers accused of submitting "statistically implausible" applications for the 2026 plan year. According to the agency, some brokers allegedly enrolled individuals without consent or used inaccurate information to collect commissions. CMS reported that more than 1 million enrollees received coverage without providing a Social Security number.
The administration estimates the total scale of potential improper spending for the 2026 plan year could reach $6.6 billion, identifying the current $2.2 billion in savings as "the tip of the iceberg." The policy affects households through the potential loss of income-based subsidies that reduce monthly premiums. Millions dropped coverage this year as medical costs rose and pandemic-era subsidies expired.
Vice President Vance characterized the affected group as a mix of "phantom people" and real individuals who do not meet legal residency or income requirements. CMS Administrator Oz said the enrollees were treated as "phantoms" because officials believe most either do not exist or were unaware they had coverage, having never filed a claim.
Morningstar analysts suggested the freeze on new broker registrations could result in reduced enrollment and lower profit margins for insurers as the risk pool changes. The National Association of Benefits and Insurance Professionals argued the blanket moratorium may penalize legitimate professionals alongside bad actors. While the administration stated it expects to save $2.2 billion, it was not immediately clear if the sum represented money already recovered or payments expected to be avoided. The freeze on new broker registrations is scheduled to remain in effect until Feb. 1, 2027.