Insurance industry executives testify during a House Ways and Means Committee Hearing on January 22, 2026.
Senators Investigate Insurance Giants for 'Quietly Colluding' With Trump to Kick People Off Healthcare
"Insurance companies chose to participate in a collaborative effort with the Trump administration to inject yet more chaos and damage into the ACA marketplace."
US Sen. Bernie Sanders and a dozen of his Democratic colleagues are investigating the roles that Cigna, UnitedHealthcare, and other leading private insurance companies are playing in the Trump administration's ongoing efforts to strip health coverage from millions of Americans.
On Monday, the lawmakers sent letters to the chief executives of 10 top insurance companies demanding answers on the firms' cooperation with the Trump administration in its recent removal of around 760,000 Affordable Care Act (ACA) enrollees, citing alleged fraud.
"Aligning with Republicans and their so-called ‘war on fraud,’ insurance companies chose to participate in a collaborative effort with the Trump administration to inject yet more chaos and damage into the ACA marketplace,” the senators wrote. “This year, nearly 3 million people have lost coverage while millions more are paying sky-high premiums and higher deductibles for insurance that covers less."
The lawmakers noted that the 760,000 coverage terminations "would not have been possible without the cooperation of insurance companies that have been quietly colluding with the Trump administration" for months. The senators disclosed in their letters that the ten largest insurance companies in the ACA marketplaces "received, and voluntarily complied with, a Centers for Medicare & Medicaid Services (CMS) data request designed to terminate coverage for hundreds of thousands of enrollees."
The letters characterize the CMS requests as "potentially unlawful" and take insurers to task for readily obeying the administration. The insurance companies that received letters from the senators are Cigna, UnitedHealthcare, AmeriHealth Caritas, Centene, Elevance, Florida Blue, Health Care Service Corporation, Imperial Insurance Companies, Oscar Health, and Molina Healthcare.
"Issuers, including Cigna, took specific steps to assist CMS in their efforts, including sending unsolicited communications to enrollees asking them to verify their Social Security numbers," the senators observed. "Issuers provided CMS with lists of enrollees who did not receive or respond to this unsolicited outreach asking for personally identifiable information. Those enrollees were deemed presumptively fraudulent, so-called 'phantom enrollees' and their coverage was terminated retrospectively, effective August 31, 2026."
The lawmakers added that "enrollees were identified as being subject to coverage termination based on metrics such as whether their projected income made them eligible for tax credits that cover the full premium of their plan, and whether they sought care during the 2026 plan year."
"As you know, there is no credible research or evidence in support of the longstanding Republican conspiracy theory that zero-dollar premium plans and zero-claims enrollment are reliable proxies for fraud," the senators wrote.
Analysts said in response to the administration's September announcement of mass coverage terminations that while fraud certainly exists in the ACA marketplaces, many of the people who lost coverage as part of the purge were likely enrolled legitimately. KFF Health News reported earlier this month that CMS has already "reinstated a small number of people whose coverage should not have been canceled."
"More could follow in the coming weeks if enrollees discover they are uninsured when they go to use their coverage," the outlet noted. "Overall, however, the administration is providing few details about the cancellations, such as how robust the outreach was to those it targeted, how long it takes for people to get reinstated after discovering their coverage was wrongly canceled, and how many such cancellations have been reversed."
The senators demanded answers from the 10 insurance company executives to a series of questions, including when the Trump administration first contacted them about its purported anti-fraud effort in the ACA marketplaces and what steps the firms took to ensure that eligible enrollees were not impacted.
The lawmakers contrasted the companies' voluntary cooperation with the Trump administration with their refusal to act on requests from Democrats last year to increase outreach to ACA enrollees amid relentless Republican attacks on the program.
"Insurance companies almost universally declined to perform any additional direct enrollee outreach, citing the cost and complexity associated with doing so outside the issuer renewal notice process," the senators wrote. "Issuers also expressed concern about being put at a competitive disadvantage should their enrollees choose to shop for more affordable coverage in light of rising premiums."
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US Sen. Bernie Sanders and a dozen of his Democratic colleagues are investigating the roles that Cigna, UnitedHealthcare, and other leading private insurance companies are playing in the Trump administration's ongoing efforts to strip health coverage from millions of Americans.
On Monday, the lawmakers sent letters to the chief executives of 10 top insurance companies demanding answers on the firms' cooperation with the Trump administration in its recent removal of around 760,000 Affordable Care Act (ACA) enrollees, citing alleged fraud.
"Aligning with Republicans and their so-called ‘war on fraud,’ insurance companies chose to participate in a collaborative effort with the Trump administration to inject yet more chaos and damage into the ACA marketplace,” the senators wrote. “This year, nearly 3 million people have lost coverage while millions more are paying sky-high premiums and higher deductibles for insurance that covers less."
The lawmakers noted that the 760,000 coverage terminations "would not have been possible without the cooperation of insurance companies that have been quietly colluding with the Trump administration" for months. The senators disclosed in their letters that the ten largest insurance companies in the ACA marketplaces "received, and voluntarily complied with, a Centers for Medicare & Medicaid Services (CMS) data request designed to terminate coverage for hundreds of thousands of enrollees."
The letters characterize the CMS requests as "potentially unlawful" and take insurers to task for readily obeying the administration. The insurance companies that received letters from the senators are Cigna, UnitedHealthcare, AmeriHealth Caritas, Centene, Elevance, Florida Blue, Health Care Service Corporation, Imperial Insurance Companies, Oscar Health, and Molina Healthcare.
"Issuers, including Cigna, took specific steps to assist CMS in their efforts, including sending unsolicited communications to enrollees asking them to verify their Social Security numbers," the senators observed. "Issuers provided CMS with lists of enrollees who did not receive or respond to this unsolicited outreach asking for personally identifiable information. Those enrollees were deemed presumptively fraudulent, so-called 'phantom enrollees' and their coverage was terminated retrospectively, effective August 31, 2026."
The lawmakers added that "enrollees were identified as being subject to coverage termination based on metrics such as whether their projected income made them eligible for tax credits that cover the full premium of their plan, and whether they sought care during the 2026 plan year."
"As you know, there is no credible research or evidence in support of the longstanding Republican conspiracy theory that zero-dollar premium plans and zero-claims enrollment are reliable proxies for fraud," the senators wrote.
Analysts said in response to the administration's September announcement of mass coverage terminations that while fraud certainly exists in the ACA marketplaces, many of the people who lost coverage as part of the purge were likely enrolled legitimately. KFF Health News reported earlier this month that CMS has already "reinstated a small number of people whose coverage should not have been canceled."
"More could follow in the coming weeks if enrollees discover they are uninsured when they go to use their coverage," the outlet noted. "Overall, however, the administration is providing few details about the cancellations, such as how robust the outreach was to those it targeted, how long it takes for people to get reinstated after discovering their coverage was wrongly canceled, and how many such cancellations have been reversed."
The senators demanded answers from the 10 insurance company executives to a series of questions, including when the Trump administration first contacted them about its purported anti-fraud effort in the ACA marketplaces and what steps the firms took to ensure that eligible enrollees were not impacted.
The lawmakers contrasted the companies' voluntary cooperation with the Trump administration with their refusal to act on requests from Democrats last year to increase outreach to ACA enrollees amid relentless Republican attacks on the program.
"Insurance companies almost universally declined to perform any additional direct enrollee outreach, citing the cost and complexity associated with doing so outside the issuer renewal notice process," the senators wrote. "Issuers also expressed concern about being put at a competitive disadvantage should their enrollees choose to shop for more affordable coverage in light of rising premiums."
US Sen. Bernie Sanders and a dozen of his Democratic colleagues are investigating the roles that Cigna, UnitedHealthcare, and other leading private insurance companies are playing in the Trump administration's ongoing efforts to strip health coverage from millions of Americans.
On Monday, the lawmakers sent letters to the chief executives of 10 top insurance companies demanding answers on the firms' cooperation with the Trump administration in its recent removal of around 760,000 Affordable Care Act (ACA) enrollees, citing alleged fraud.
"Aligning with Republicans and their so-called ‘war on fraud,’ insurance companies chose to participate in a collaborative effort with the Trump administration to inject yet more chaos and damage into the ACA marketplace,” the senators wrote. “This year, nearly 3 million people have lost coverage while millions more are paying sky-high premiums and higher deductibles for insurance that covers less."
The lawmakers noted that the 760,000 coverage terminations "would not have been possible without the cooperation of insurance companies that have been quietly colluding with the Trump administration" for months. The senators disclosed in their letters that the ten largest insurance companies in the ACA marketplaces "received, and voluntarily complied with, a Centers for Medicare & Medicaid Services (CMS) data request designed to terminate coverage for hundreds of thousands of enrollees."
The letters characterize the CMS requests as "potentially unlawful" and take insurers to task for readily obeying the administration. The insurance companies that received letters from the senators are Cigna, UnitedHealthcare, AmeriHealth Caritas, Centene, Elevance, Florida Blue, Health Care Service Corporation, Imperial Insurance Companies, Oscar Health, and Molina Healthcare.
"Issuers, including Cigna, took specific steps to assist CMS in their efforts, including sending unsolicited communications to enrollees asking them to verify their Social Security numbers," the senators observed. "Issuers provided CMS with lists of enrollees who did not receive or respond to this unsolicited outreach asking for personally identifiable information. Those enrollees were deemed presumptively fraudulent, so-called 'phantom enrollees' and their coverage was terminated retrospectively, effective August 31, 2026."
The lawmakers added that "enrollees were identified as being subject to coverage termination based on metrics such as whether their projected income made them eligible for tax credits that cover the full premium of their plan, and whether they sought care during the 2026 plan year."
"As you know, there is no credible research or evidence in support of the longstanding Republican conspiracy theory that zero-dollar premium plans and zero-claims enrollment are reliable proxies for fraud," the senators wrote.
Analysts said in response to the administration's September announcement of mass coverage terminations that while fraud certainly exists in the ACA marketplaces, many of the people who lost coverage as part of the purge were likely enrolled legitimately. KFF Health News reported earlier this month that CMS has already "reinstated a small number of people whose coverage should not have been canceled."
"More could follow in the coming weeks if enrollees discover they are uninsured when they go to use their coverage," the outlet noted. "Overall, however, the administration is providing few details about the cancellations, such as how robust the outreach was to those it targeted, how long it takes for people to get reinstated after discovering their coverage was wrongly canceled, and how many such cancellations have been reversed."
The senators demanded answers from the 10 insurance company executives to a series of questions, including when the Trump administration first contacted them about its purported anti-fraud effort in the ACA marketplaces and what steps the firms took to ensure that eligible enrollees were not impacted.
The lawmakers contrasted the companies' voluntary cooperation with the Trump administration with their refusal to act on requests from Democrats last year to increase outreach to ACA enrollees amid relentless Republican attacks on the program.
"Insurance companies almost universally declined to perform any additional direct enrollee outreach, citing the cost and complexity associated with doing so outside the issuer renewal notice process," the senators wrote. "Issuers also expressed concern about being put at a competitive disadvantage should their enrollees choose to shop for more affordable coverage in light of rising premiums."