Report Details Health Insurance Enrollment Removals and Flags

A Department of Health and Human Services report examined enrollment patterns in subsidized health coverage after enhanced subsidies expired at the end of last year. The report outlined two rounds of data matching that removed about 550,000 people enrolled in both Medicaid and subsidized exchange plans.

Officials also removed roughly 665,000 enrollees who failed to file federal tax returns to reconcile prior subsidy amounts.

The report stated that 27.8 percent of individuals in zero-premium plans canceled coverage through May 2026. Officials noted that 1 million highly suspicious enrollments assisted by agents and brokers lacked Social Security numbers and paid no premiums.

A federal judge blocked enforcement of a rule that would have required annual tax filing and subsidy reconciliation. Officials identified an additional 300,000 enrollees who could face removal for failing to file returns.

More than half of enrollees who moved from zero-premium plans last year to plans requiring payment in 2026 had coverage canceled for nonpayment. Between 2017 and 2022, an average of 18 percent of similar enrollees lost coverage for the same reason. The report noted that a prior study found charging even a $1 monthly premium could lead nearly 1 million people to drop coverage.

The analysis also referenced prior reports from the Congressional Budget Office and Government Accountability Office on income misstatements and fictitious enrollments.