CMS has reinstated a small number of enrollees who lost coverage after the agency canceled ACA policies for more than 760,000 people, according to a KFF Health News report published Oct. 15 in NPR.
KFF Health News learned of the reinstatements through insurance industry sources, finding that not all of those who lost coverage were fraudulently enrolled.
On Aug. 31, CMS canceled 315,000 policies for 2026 that covered more than 760,000 individuals. These enrollees signed up with agent or broker assistance but lacked citizenship or immigration documentation, and issuers were unable to find claims or did not have records of contact, according to a September rulemaking document. CMS told Becker’s on Oct. 15 that another criterion was whether premiums were fully covered by advance payments of the premium tax credit. CMS expected that these cuts would lead to a return of roughly $2.2 billion in subsidies.
During a Sept. 22 news conference, Vice President JD Vance said the government would carry out further verification concerning legal status and income for 419,000 people. Mr. Vance leads the White House Task Force to Eliminate Fraud, spearheading a federal crackdown on fraud, waste and abuse.
CMS said that after deeming enrollments as unauthorized, policy issuers had to conduct outreach to the consumers through multiple channels, giving 30 days for a response. The policies for enrollments that fulfilled the unauthorized criteria and had no contact were canceled.
However, CMS said affected legitimate consumers can contact the Marketplace Call Center and provide their verified Social Security or immigration document number to be reinstated. CMS declined to provide the current number of individuals reinstated to Becker’s.
ACA integrity remains a top concern for CMS. Amid the policy cancellations, CMS also temporarily froze new agent and broker registrations with federally facilitated exchanges for plan year 2027. An ACA marketplace rule finalized in May 2026 resurfaced certain verification procedures and will narrow tax credit eligibility, but the rule has been met with legal challenges.
At the Becker's 5th Annual Fall Payer Issues Roundtable, taking place November 2–3 in Chicago, payer executives and healthcare leaders will come together to discuss value-based care, regulatory changes, cost management strategies and innovations shaping the future of payer-provider collaboration. Apply for complimentary registration now.
