The Trump administration has cut Obamacare subsidies for approximately 189,000 people found to have duplicate government health coverage or to be deceased. Federal officials announced Wednesday, October 14, that the move is expected to save taxpayers about $738 million this year.
The Department of Health and Human Services (HHS) said the Centers for Medicare & Medicaid Services (CMS) identified the improper enrollments through a review of federal records.
The affected individuals were receiving subsidized coverage through the Affordable Care Act (ACA), also known as Obamacare, while already enrolled in Medicare, Medicaid, or the Children’s Health Insurance Program (CHIP). The review also identified deceased individuals whose Obamacare subsidies remained active.
According to Reuters, CMS canceled duplicate subsidies for approximately 120,000 Medicaid recipients and 58,000 Medicare beneficiaries.
Another 11,000 subsidized plans belonging to deceased individuals were terminated. Officials expect to remove an additional 3,500 deceased enrollees by the end of October.
Health Secretary Robert F. Kennedy Jr. said the changes would prevent an estimated $738 million in improper subsidy payments this year. The administration expects annual savings to exceed $1.5 billion going forward.
“Taxpayers should not foot the bill for duplicate coverage or subsidies for people who have died,” Kennedy said in the HHS announcement.
Officials said the removals would not leave affected individuals without health insurance. Those with duplicate coverage would remain insured through Medicare, Medicaid, or CHIP.
Under federal procedures, individuals flagged for duplicate coverage receive a notification and have 30 days to dispute the findings.
Even after that period, individuals can appeal the decision or demonstrate that their Medicaid or CHIP coverage is ending. Those who qualify can have their Obamacare subsidies restored.
The government also contacts individuals or their estates when federal records indicate they are deceased. They have 30 days to challenge the finding before their coverage and subsidies are terminated.
The latest action follows a broader effort by the Trump administration to identify improper enrollments in federal health programs.
In 2025, CMS ended duplicate Obamacare subsidies for approximately 551,000 people already receiving Medicaid coverage.
HHS said regular checks for overlapping coverage were strengthened during Trump’s first administration. The reviews were conducted at least twice annually but were suspended for Medicaid and CHIP beneficiaries under former President Joe Biden.
The Trump administration resumed the checks in 2025.
CMS Administrator Dr. Mehmet Oz criticized the previous administration for suspending the reviews. He said the pause created a backlog of hundreds of thousands of duplicate enrollments.
According to The Epoch Times, officials also said that many individuals are unaware they have been enrolled in multiple programs. Insurance companies, brokers, and agents can profit from these overlapping enrollments.
The latest removals are separate from another initiative announced in September.
Vice President JD Vance said the administration was halting enrollment for more than 760,000 people suspected of being fraudulently signed up for Obamacare coverage. Officials estimated that the earlier action would save approximately $2.2 billion.
Meanwhile, CMS has identified another potential problem involving people enrolled in Medicaid or CHIP across multiple states.
Medicaid Director Dan Brillman said federal officials found approximately 1.2 million potential cases of such overlapping enrollment each month.
Beginning in January 2027, states will be required to verify enrollees’ addresses to address the issue.