Analysis-Vance’s fraud crackdown may raise costs for US health insurers, enrollees
Vice President JD Vance announced the removal of 760,000 enrollees from Obamacare health insurance plans, alleging they were fraudulent or never existed. Another 400,000 are under review. This crackdown could lead to higher prices for consumers and insurers as the healthier enrollees are removed, leaving a sicker patient pool that could strain insurers like UnitedHealth and Centene.
The premium rates for 2027 have already been approved, and experts predict that insurer profits may be squeezed due to the decrease in enrollees, potentially leading to even higher premiums in 2028. The announcement has already impacted health insurance shares, with several companies experiencing declines.
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