Vice President JD Vance and Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz announced Tuesday that the White House Task Force to Eliminate Fraud is cutting subsidy payments for roughly 760,000 Affordable Care Act exchange enrollments, as reported by The Gateway Pundit.

Officials said the enrollments were fraudulent, unauthorized, or tied to people who were not real or eligible.

Vance, who chairs the task force, estimated that canceling the subsidies will save American taxpayers $2.2 billion.

Vance compared those projected savings with the roughly $4,000 in health care benefits received by the average American child each year.

"To put into context the amount of money that we're stopping from going to fraudsters today, the average American child receives about $4,000 in health care benefits every single year. That means that we are saving 550,000 American children's worth of health care that was going… pic.twitter.com/V7hO0igeDe

— Vice President JD Vance (@VP) September 22, 2026

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By his calculation, $2.2 billion is equivalent to the cost of providing health coverage for 550,000 American children.

“We are announcing $2.2 billion in American taxpayer money that we’re saving by doing what should have been an obvious thing,” Vance said during a news conference at the Eisenhower Executive Office Building.

“We’re actually making sure that the people receiving Obamacare subsidies are actually entitled to receive them… Amazingly, we weren’t doing that before.”

VP Vance on huge @WHFraudTF win:

"We are announcing $2.2 billion in American taxpayer money that we're saving by doing what should have been an obvious thing. We're actually making sure that the people receiving Obamacare subsidies are actually entitled to receive them" pic.twitter.com/XRfAThR29a — Vice President JD Vance (@VP) September 22, 2026

Vance said investigators uncovered one fraud ring involving 40 brokerage agents who funneled 50,000 people into Obamacare.

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He said some of those people were probably legitimate, but most were not eligible because they failed citizenship or income requirements.

Many of the purported enrollees, Vance said, did not even exist.

He described a system that rewarded brokers and allowed them to profit by enrolling fake people in programs intended to provide health care to citizens.

The 760,000 canceled enrollments include alleged phantom beneficiaries as well as real people whom officials said should not have been receiving taxpayer subsidies.

Vance said that group included people enrolled without their knowledge, people with employer coverage, and people whose incomes exceeded subsidy limits.

VP Vance on rampant Obamacare fraud:

"We found a fraud ring that had 40 brokerage agents who had funneled 50,000 people into the Obamacare system fraudulently...Many of those people quite literally didn't even exist. We had a system in this country that rewarded brokers, that… pic.twitter.com/28mdDDLlJD — Vice President JD Vance (@VP) September 22, 2026

Another 419,000 enrollments are undergoing additional verification involving citizenship and income.

The administration is therefore continuing its review beyond the accounts already targeted for canceled subsidy payments.

Oz said investigators attempted to contact questionable enrollees through letters, telephone calls, and FedEx packages but received no response.

Officials also found no doctor visits or prescription purchases associated with many of the accounts.

“They haven’t bought a prescription medication. They haven’t seen a doctor. That’s just not possible,” Oz said.

Oz estimated that about 35% of the affected accounts showed no use, roughly twice the rate expected in a normal insurance pool.

He also said more than 1.1 million people enrolled this year without a Social Security number on file, compared with a typical share of about 1%.

The Gateway Pundit reported on the same ghost patient issue last year, citing Sen. Roger Marshall.

Marshall said 35% of counted Obamacare enrollees filed no claims, while brokers could register people using little more than a name and birthdate before the government issued subsidy payments.

Oz also announced a six-month nationwide moratorium on new Obamacare brokers. Existing agents may continue working, but new brokers will not be allowed into the program during the pause.

“There will be no new brokers for Obamacare in this country for the next six months,” Oz said. “Most of the fraud, a disproportionate amount of the fraud, is taking place from these individuals.”

The Centers for Medicare and Medicaid Services has already moved to terminate hundreds of brokers, including 469 late last month.

The task force’s action places further scrutiny on a broker system officials blame for a disproportionate amount of the fraud.

The Gateway Pundit previously reported that executives Cory Lloyd and Stephen Strong were each sentenced to 20 years in a $233 million Obamacare subsidy scheme.

Prosecutors said the executives improperly enrolled people, manipulated income figures, and used proceeds for an 80-foot yacht, luxury vehicles, and a Florida Keys mansion.

The source also blamed enhanced COVID-era subsidies, weak verification, and broker commissions during the Biden and Harris years for encouraging agents to enroll additional names through Healthcare.gov.

The latest cancellations, verification reviews, broker terminations, and moratorium represent the task force’s response to those vulnerabilities.

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