A federal crackdown on suspected unauthorized Affordable Care Act sign-ups has led to coverage cancellations for 955 Michiganders, with another 1,372 enrollees under review. The concern is that people were enrolled without their permission, potentially generating taxpayer-funded subsidies for policies they never requested.

Michigan insurance officials reported increased complaints about unauthorized enrollments and plan switching beginning in 2025, according to Bridge Michigan’s October 21 report. The investigation does not establish that affected consumers themselves committed fraud.

The Michigan cancellations occurred August 31 and covered 706 policies. Another 1,065 policies covering 1,372 people remained under review as of September 23. Together, the actions affected 2,327 enrollees, although only the first group had coverage canceled.

Nationally, the Centers for Medicare & Medicaid Services said reviews conducted with insurers confirmed approximately 315,000 unauthorized enrollments covering more than 760,000 individuals. CMS expects roughly $2.2 billion in advance premium tax credits to be returned; that figure represents anticipated recoveries rather than money already recovered.

Federal investigators are also scrutinizing agents and brokers who submit marketplace applications. Since January, CMS has issued termination notices to more than 200 for noncompliance. Additional safeguards include identity checks and electronic consumer authorization before brokers can act on applications or enrollments.

The enrollment investigation accompanies broader healthcare fraud enforcement during President Donald Trump’s second term. In June, the Justice Department announced charges against 455 defendants, including 90 medical professionals, involving more than $6.5 billion in alleged false claims. Those criminal investigations are separate from the ACA reviews.

Federal prosecutors in Michigan’s Eastern District also announced six cases involving criminal charges or civil resolutions connected to healthcare programs, including Medicare and Medicaid.

Unauthorized enrollment findings can still be disputed. Some consumers affected by the nationwide sweep have had coverage restored, Bridge reported, and Michigan officials say people whose policies were canceled incorrectly can request reinstatement through the federal marketplace.