Washington DC-- September 23, 2026: The Trump administration and the Centers for Medicare & Medicaid Services (CMS) have initiated a major enforcement action targeting the Affordable Care Act (ACA) marketplaces. The federal government has implemented targeted freezes, closed off mid-year enrollment avenues, and canceled active policies under an anti-fraud initiative.
The administration did not present individual, real-world case examples during the announcement.
Freeze on New Broker Registrations: CMS issued an interim final rule establishing a temporary moratorium that pauses the registration of new independent health insurance agents and brokers on the federally facilitated exchanges through February 1, 2027. CMS explained that newly registered brokers for the 2026 plan year accounted for a disproportionate share of high-risk activity, being nearly three times more likely to submit applications with missing Social Security numbers or unresolved citizenship documentation. The pause is designed to allow the agency time to implement enhanced identity verification, monitoring, and program integrity safeguards before onboarding new agents.
Termination of Noncompliant Agents: CMS announced that since the start of 2026, it has issued final termination notices to more than 200 agents and brokers for rule violations. In addition, regulators issued 569 notices of intent to terminate agreements with agents who submitted statistically implausible volumes of applications lacking essential applicant identification.
Ending Continuous Year-Round Low-Income Signups: The administration halted the continuous, year-round Special Enrollment Period (SEP) previously granted to low-income individuals earning up to 150% of the federal poverty level. Under tightened marketplace rules, consumers without a qualifying life event (such as job loss or marriage) must now wait for the standard annual Open Enrollment period to sign up.
Unauthorized and "Phantom" Enrollments: Vice President JD Vance and CMS Administrator Dr. Mehmet Oz explained that investigations revealed hundreds of thousands of people were enrolled in policies without their knowledge or consent. Officials noted that many canceled accounts involved "phantom" individuals who either did not exist or had no idea coverage had been established in their names by commission-seeking brokers.
Recovering Billions in Federal Subsidies: HHS Secretary Robert F. Kennedy Jr. stated that shutting down improper accounts will return an estimated $2.2 billion in taxpayer-funded advance premium tax credits to the federal government. Administration estimates indicate that improper marketplace enrollments could account for several billion dollars in improper federal spending annually.
Additional Verifications Underway: Federal officials confirmed that another 419,000 to 450,000 enrollees have been flagged for stricter review to verify citizenship, immigration status, and household income eligibility.
Stricter Documentation Controls: CMS is rolling out tighter safeguards requiring all remaining agents and brokers to re-verify their identities through Login.gov or ID.me, mandate verifiable Social Security numbers or immigration document numbers on broker-assisted applications, and secure direct electronic authorization from consumers before an agent can manage their enrollment.
As previously reported, the administration moved to drop coverage for roughly 760,000 individuals across 315,000 accounts after investigators cited widespread unauthorized signups, missing identity documentation, and non-responsive policyholders.
We reported on the Trump Administration Cut 760,000 From Affordable Care Act Plans Over Fraud Claims.