The Centers for Medicare & Medicaid Services (CMS) said it is canceling approximately 315,000 unauthorized enrollments in the federal health insurance marketplace covering more than 760,000 individuals. The cancellations are expected to return roughly $2.2 billion in taxpayer-funded subsidies, according to the agency.
The action is part of a three-pronged CMS strategy to prevent fraudulent enrollments, remove existing unauthorized ones, and strengthen oversight of marketplace agents and brokers, the agency said. CMS has established a Federally-facilitated Exchange anti-fraud coordination group to coordinate enforcement efforts.
HHS Secretary Robert F. Kennedy Jr. said the agency is "strengthening safeguards, pursuing bad actors, and holding agents and brokers accountable when they break the rules."
Since January 2026, CMS said it has issued termination notices for over 200 non-compliant agents and brokers. This summer, the agency issued 569 notices of intent to terminate to agents and brokers who submitted 2026 applications without key applicant information, including Social Security Numbers.
CMS is implementing new requirements including requiring agents and brokers to re-verify identity through Login.gov or ID.me, requiring Social Security Numbers or immigration document numbers on applications, preventing agents from being added to applications consumers complete themselves, and requiring electronic consumer authorization before agents can act on applications or enrollments, according to the agency. The agency also announced a temporary moratorium on new agent and broker registrations for the 2027 plan year for those without an active Exchange Agreement for 2026.