**For Immediate Release**

For Immediate Release

Date: October 26, 2023

Location: Washington, D.C.

Headline: HHS Announces Significant Reduction in Affordable Care Act Coverage Enrollment; Millions to Lose Federal Subsidies

Body:

The United States Department of Health and Human Services (HHS) announced today that an estimated 3.1 million enrollees in the Affordable Care Act (ACA) marketplace will lose their health coverage effective January 1, 2024. This development follows the conclusion of a major federal audit that identified widespread procedural errors in income verification and subsidy calculations.

Who: The affected population comprises primarily low-to-moderate income households who received advanced premium tax credits. The HHS Office of Inspector General has confirmed errors in the income documentation of 2.4 million applicants, leading to retroactive subsidy ineligibility.

What: The mandatory removal of these individuals from their respective health plans, resulting in the termination of coverage. Those affected will be responsible for the full cost of any medical claims incurred after the termination date, as subsidies will not be retroactively applied.

When: The termination of coverage will take effect at 11:59 PM Eastern Standard Time on December 31, 2023. Notices will be mailed to all affected households starting November 15, 2023.

Where: The administrative action applies to all 36 states utilizing the federally facilitated HealthCare.gov marketplace. This includes, but is not limited to, Texas, Florida, Georgia, and Ohio. States operating their own exchanges, such as California and New York, are conducting separate audits.

Why: An HHS spokesperson cited “systemic data-matching failures within the Federal Data Services Hub” as the primary cause. A routine cross-check with IRS tax records and Social Security Administration data revealed that a substantial number of applicants received subsidies for which they did not qualify based on their final Adjusted Gross Income.

Impact: The Congressional Budget Office now projects that