The Democrats are pretending this shutdown is about your health care.
It’s not—it’s about fraud.
They want you to believe the sky is falling—your health care is going to double in cost (or go away completely, depending on the day), and low-income ObamaCare enrollees are going to get left out in the rain.
These are scare tactics, designed to cover up for the proposal they’re really pushing: an extension of temporary COVID-era subsidies, riddled with fraud they’d rather not admit exists.
As many Americans know, ObamaCare operates by households purchasing health insurance through the exchange. Based on the enrollee’s income, the insurance premium is offset by a federal subsidy, paid directly from the government to the insurer. In nearly every case, this results in a big discount on the monthly premium.
In 2021, President Biden and Democrats in Congress included a massive sweetener to these ObamaCare credits at every income level, including those making hundreds of thousands of dollars.
For as many as half of ObamaCare enrollees, that meant a $0 out-of-pocket premium, fully covered by the taxpayer subsidies. This, predictably, led to a surge of enrollments—and very real incentives for fraud and bad actors.
That’s because ObamaCare isn’t just individual people logging on to find health insurance. Today, nearly 80 percent of all ObamaCare enrollees are signed up by an insurance agent or broker, who receive a commission for every sign-up. Their incentives are clear—sign up as many people as possible, no matter what it takes. The result: a blind eye turned toward eligibility; unwanted or unrequested insurance changes; and insurance that the taxpayers are funding but the recipient doesn’t need.
The Wall Street Journal recently exposed some of the deceitful tactics used by brokers to trick low-income Americans into signing up for these plans: fraudulent Facebook and Snapchat ads, empty promises of gift cards, and even agents switching enrollees’ plans without their knowledge. According to the Journal, “CMS has received more than 208,000 complaints this year of unauthorized ACA insurance sign-ups,” and 200 agents and brokers have been suspended on suspicion of fraud.
A shocking number of these customers never even use the health care they signed up for.
In 2024, a full 40 percent of fully subsidized (zero premium) enrollees had no health care claims whatsoever. No annual visit, no blood work, no prescriptions, nothing.
These “no-claim enrollees” are an ongoing profit stream for the insurance company paid by the taxpayers—at least $35 billion for people who pay zero and never use their plan.
During the housing market bubble of the early 2000s, unscrupulous mortgage brokers made a killing selling mortgages to “NINA” and “NINJA” borrowers: “No Income, No Asset” or “No Income, No Job, No Asset.” The broker’s incentive in this case, again, wasn’t about verification of eligibility or long-term consequence—it was sales, no matter who they were sold to. When these mortgages understandably failed and the housing market collapsed, hindsight made it clear how dangerous those loans were and how predatory these brokers were.
But the Democrats created a system to bring those same mistakes to health care. In the same way that unscrupulous mortgage lenders didn’t bother with verification, ObamaCare brokers have the same incentives today—boosted by the extra subsidies the Democrats just shut down the government to protect. And once again, the taxpayers have to bail them out in the end.
Today, as many as 6.4 million ObamaCare enrollees are receiving zero-premium plans they aren’t eligible for, at an estimated fraud cost of $27 billion per year. A staggering 1.6 million are also enrolled in Medicaid at the same time as ObamaCare, meaning the taxpayers are paying twice for health coverage the recipient may not even be using.
Most Republicans rightly want these temporary credits to expire as intended. They are backed by an overwhelming majority of voters from every party: Republican (67 percent), Democratic (67 percent), and Independent (66 percent).
And for the real people stuck in the middle of this government showdown, the real-world result is nowhere near the Democrats’ “sky is falling” rhetoric. When these credits return to pre-COVID levels, households at the poverty level will still have 98 percent of their monthly premium cost covered, paying about $3.45 a week on average in premiums.
This is hardly the first COVID-era program to expire according to the Democrats’ own sunset date. The Democrats didn’t shut down the government to protest the end of the Paycheck Protection Program, or enhanced unemployment benefits, or the Restaurant Revitalization Fund. So why won’t the Democrats allow these enhanced COVID-era credits to expire?
Maybe it’s because they know that ObamaCare doesn’t work without massive subsidies, so they don’t want to give an inch. The Washington Post recently hit the nail on the head: “The real problem is that the Affordable Care Act was never actually affordable.”
Maybe it’s because this subsidy hits all three of the Democrats’ biggest issues today: ObamaCare, COVID spending, and opposition to Trump.
No matter what is really behind the Democrats’ shutdown, the truth is clear.
The Democrats shut down the government to protect fraud—not your health care.
Maggie Harrell is the Federal Affairs Director at the Foundation for Government Accountability.
The opinions expressed by columnists are their own and do not necessarily represent the views of AMAC or AMAC Action.
Yes, to protect the fraud and their own hides with it. That would sum up Obama presidency nicely, his legacy.
Democrats don’t have ‘voter blocks’ per se. They have CLIENTELE. And now Trump has shown America who their clientele is. Illegals and those who will not work.
This is the root cause of the “hate” they have for President Trump. He’s on to them and is cutting out their “petty cash”. Check out how much $ these folks go into politics with and how much they are worth today. Not rocket science. Their getting their millions from all the kickbacks from these fraudulent programs.
ain,t it amazing when u pull back the curtain and expose the truth the dems are protecting. We cannot afford any more dem. control ever.
Check this out–the Dems are losing their voting base of those they have effectively economically enslaved for decades. They need “fresh meat” — illegals are perfect for that group. Previously poor and people of color have been spoon fed benefits and just enough money to keep them afloat. They have been educated and have wised up and realize that Capitalism is for them. President Trump has opened their eyes. When Trump was elected the Dems went crazy, they were losing money and their voting base.
The trouble with this report is that Democrats won’t read it, or, admit it. Obama was their “ignited ruler”, and he was religion for them.
The last 4 sentences sum up everything nicely.
Well, I’d say they did it for both reasons. Either way, it’s not right. The “Affordable” Care Act, like most DIMM programs, is just the opposite of its name. That’s why they need subsidies to keep it from falling under its own weight! Add in paying for illegal immigrants health costs plus amenities and its billions going down the drain to buy votes!
Why hasn’t any thought about the citizens that make to much for Medicaid but can’t afford to pay for any health care that would be worth it paying for.
It’s to give the illegal invaders our tax dollars.
& the damn Illegals who want HC
Imagine that!
Only what many of us knew all along would surface sooner or later which simply put is the truth.
The Democrats kicked out every Republican from the process of voting in Hillarycare AKA 0bamacare AKA Affordable Care Act.
Then, they brought forth their former, well known Speaker of the House to utter her world renounced babbling:
“”We had to pass it in order to read what’s in it….””.
The Democrat Party is one huge kidney stone that we all must pass in order to see to MAHA.
The democrats shut down the government over lies. ACA was never affordable healthcare. They passed it and then found out what was in it. And then the people found out they couldn’t afford it. So they added tax money to help pay the high premiums. The people were still paying the high premiums. The money was first funneled via the IRS to the treasury and then that money was paid to the insurance companies for the high premium. The people pay for the high premiums one way or the other. 2/3 of the people are against ACA and its high premiums. And still the dems shut down the government. And when President Trump tried to fire or lay off federal workers they take him to court. Who is running this country. The millionaires and the billionaires. AARP is a lobby group for United Health with premiums so high nobody can afford it especially those on Medicare. And what takes the cake the Congress voted they themselves DIDNT have to enroll in ACA. I wonder why. This so called health insurance for all is a fairy tale. Nobody can afford the premiums. The copays are rising every year. The country is going broke having to subsidize the premiums for the poor, middle class and millionaires. This has to be overhauled. Because now the democrats want to include 20 million illegals as well. A way to bankrupt this country. Day in and day out they try to make the majority in this country out to be fascists or Nazis. While they themselves are using Nazi and Gestapo tactics to eliminate those on the right and bankrupting the country at tge same time.
This is the Democrat history of not tell all of the truth
In 2015, I signed up for Obama insurance not realizing it because I had gone through my local insurance company. I was directed to another agency still not realizing that I was signing up for Obamacare but I needed something because my husband had passed away and I could not afford to pay what was necessary to keep the policy which would have been about a $1000 a month. I was asked what my income was and I gave them my earned income from my job but asked if they needed my disability income check that I was getting from my husband’s estate and also a retirement check I received as a spouse. They outright lied to me and said I only had to report my earned income from my job which made me within the income limits. At the end of the year, I received a 1099 from them saying I owed about $5000 to the government because I had not reported all my income. I have to wonder how many others were lied to about that. I’ve heard many stories where people got caught up in the scam. It was all about getting as many as possible to sign up to make Obamacare look good.
Yes, and if this is true, which I believe why can’t something be done about it? There is so much fraud waste and abuse in the government and we keep hearing about it but nothing’s being done Why why why?
There actions are a perfect example of why this country needs term limits now more than ever!
It has been made clear from numerous resources that the health issue has always been on the agenda for review by Congress and the current request is strictly for extension of time. Looking back at all the activities of the last administration, the Dems current action appears to me like a last-ditch effort to use the health issue by closing the government to continue to destroy the Constitutional Republic as they try to pursue their agenda of Marxist Socialism. Their action continues to illustrate that they could care less about the welfare of the entire nation.
I believe everything you saying. When Obamacare came on my sister lost her medical insurance then the government charged her for not having medical insurance , then she was forced to get obamacare and charged her almost twice as much
…and my’ free’ Medicare, with Part b supplement and Part d, costs me about a grand a month….
Anything with the letters ‘OBAMA” are best avoided. Tell your friends.
Now, to this very message out to everyone, including fox, and the bloggers on YouTube.
Well said article, but too many people are drinking the Koolaid and believing that they will be losing their benefits. The only losers are going to be those who were dipping into the slush funds and not getting caught. Let them complain about their non-loss because my coverage still has costs and they want us seniors to be happy with a COLA increase that just barely covers the intended increase to Medicare’s premium. But somehow they are trying to create the illusion that all seniors have Medicaid benefits also which is not true. And are extremely upset that we are getting a discount on the taxes taken out of our Social Security benefits. Meanwhile 46% of able bodied adults don’t work and rely solely on government subsidies and believe the nonsense that is being spread by the Democrats..
RIGHT ON—AN OBVIOUS FRAUD FROM THE BEGINNING By the ultimate Fraudster
Bravo you shining the light on just another way Dems are probably being funded by Big Insurance yo keep the gravy train going down the tracks,
The main reason that the radical liberals are deranged is because President Trump is showing the whole country all of the fraud they have been committing for YEARS!! They no longer are able to have their pet projects supported by we, the people who have been in the dark about all of their schemes! I am still angry that none of our Republicans in Congress ever had the guts to uncover and ended the fraud so that it could have been stopped decades ago. Thank God for President Trump. The radical liberals are liars; always have been and always will be if we let them.
demorats have become a terrible scourge to this nation
Our government has become so overbloated and corrupt that we need “REAL LEGISLATION” in order to get back to basics per our forefathers vision. This needs to happen in the next 3 years or we need a Convention of States, or civil war!
I agree and appreciate the article… !!
This writer is either very delusional or in on the lies. Life long Democrat, until last October, when I couldn’t rationalize the absurdity. I have made piece with myself realizing the traditional real Democrats are gone for the most part with very few exceptions. The proud party of Jefferson, Jackson and Kennedy has been infiltrated with the likes of socialists, narcissists, sheeple and useful idiots herded into voting blocks.
Those Zero cost ObamaHandouts don’t do much for those people besides giving them a card. This is the example of the Hope and Change we swallowed over this – they gutted health care to level below the Canadians and hoped we wouldn’t say anything.
It’s our time to make a stand, either gut the corrupt leadership of the party once known as Democrats, or just let it wilt into oblivion as the Democratic Socialist Party. But for me and my old Democrat friends we want the government open and not fund the illegal aliens and criminals.
Fetterman should be the example.
Thank you for being brave enough to tell the American people the truth! Keep up the good work!
Schumer getting off his but and voting for the clean cr bill to get government open so they can go into their committees to work it out the problem with Obama care. The drama the democrats are putting this country through is reckless and fools errand hurt Americans citizens!
It’s no longer a surprise. Corruption is the heartbeat of the current Democrat party. It is hard to believe anything they say
My stepson has the dumb Obamacare and the only place that will take it is 60 miles from his home. So, he pays for it and can’t use it locally.
The Obamacare subsidies that Dems snuck in during COVID are absurdly expensive and yes they do include healthcare for illegals. Both are true. But there is a bigger issue Republicans face: COME UP WITH A FIX FOR OBAMACARE THAT WORKS FOR ALL AMERICANS! Republicans talked for years about doing this! DO IT!!! Our healthcare system is a mess, and it needs a complete overhaul.
Proving Health Care is not included in any of the Federal Government’s 18 enumerated powers. Therefore, it is covered by the tenth Amendment and is a States Rights issue.
Obamacare should be in the budget at all and Congress neds to repeal it and let the States worry about providing health care.
Methinks ANY dem/lib/commie/socialist program is a conduit of 10% to each and every dem congressional arse holie and their cronies….
Another reason why government should have no control over any part of our social lives. Every government program is subject to those working in government to scam taxpayers and take control over our lives.
No matter the reason,the deep state leftist democ rats shut it down.There is a reason for everything that they say and do and it’s ALWAYS about money and power,for the democ rats ONLY.
Democrats lying? WTF? I’m astounded!
Fantastic article, Well done
I just got duped into Obamacare. It’s costing me $600 a month and that’s with a so called $205 a month “tax credit”. I had to go through COBRA to keep my dental and vision insurance, which is costing me another $50 a month. I should have just went through COBRA for health insurance as well, because next year it’s going to cost me the same as it would have been through COBRA. Possibly even a little more for all my insurance premiums
Very good well written article. It’s exactly what I’ve been thinking and saying all along. Same old S**t, just a different day (SOS).
Couldn’t share this on FB. ” oops, something went wrong “.
Stat shut down and do not give an inch to Democrats. Fire employees who are not necessary for the essential services of our government. Trump plus the Congress, are doing great. More DODGE!
I really hope they get it fiqured out, as a recent widow I need this insurance at an affordable price
American citizens are tired of the lies, the hidden people, the control over democrats, and (American citizens). It is all about them, citizens are excluded (but required to pay for their criminality views; as they will learn when ousted. Cheating on election is certainly taking place, but hopefully being watched and arrests for this will occur.
Just keeping the feathers in their nest tidy. No one should be fooled about the DEMs justification for shut down. They need to own and pay for it!
Trump’s Statements on Government Shutdowns2011 Interview Insights
Consistent Messaging
Current Context
These statements reflect Trump’s belief that the president plays a crucial role in preventing government shutdowns and should be accountable for their occurrence.
They also did it to put themselves into a position to roar that the Republicans did it. It hasn’t worked. Our president let them put their negative sentiments out there, then he found a way to continue paying all in the military. Who is NOT going to support a president who finds a way to protect our military and their families while keeping our country safe, even if you are a democrat. Brilliant move, but it doesn’t surprise me. I don’t think the USA will find another president like ours ever again.