Senator Cortez-Masto’s Fraud Admission Exposes Democrats’ Hypocritical Obamacare Bailout Scheme

In a damning revelation that unmasks the Democrats’ reckless stewardship of taxpayer dollars, Senator Catherine Cortez Masto (D-NV) has finally confessed to what Republicans have been shouting from the rooftops: the Affordable Care Act is unaffordable and, under Democratic design and leadership, is nothing more than a subsidy program wrought with waste, fraud, and abuse.

But instead of demanding immediate accountability, Cortez Masto shamelessly pushes for a “clean” extension of these enhanced Obamacare subsidies—expiring at year’s end—essentially begging for another multi-billion-dollar bailout without fixing the glaring problems her party created.

During her Wednesday interview on Bloomberg’s “Balance of Power,” Cortez Masto’s words are taken directly from the Democrats’ playbook: admit the fraud exists to appear reasonable (and honest), then stonewall real reforms while forcing through yet another unchecked handout to insurance companies.

Her full, hypocritical statements make it crystal clear:

“I can tell you this: The simple thing to do right now, if they really want to address this issue [of premium costs], is just do a clean extension. They want to talk reforms? We’re willing to talk reforms. Capping the income at the high level, we’re talking about what we can do to address the waste, fraud, and abuse they have concerns with. We have concerns with it. There are reforms that we can discuss and actually move forward on. But we have to do an extension, because what we’re going to see right now in the American public come January, or, actually, the end of this month, too many people are not going to be able to afford their healthcare.”

Her evasion continues:

“So, count me in the camp of, let’s do a clean extension, you want to talk reforms? Then we get in a room and do it. But let’s just make sure we’re taking care of those people the next two years so nobody’s falling off that healthcare cliff.”

This is peak Democratic doublespeak—acknowledge the fraud that has squandered billions on ineligible recipients, including non-citizens, the wealthy, and even the dead, but insist on renewing the program first and “talking” fixes later. It’s a transparent ploy to perpetuate fiscal irresponsibility, all while patting themselves on the back for “compassion.”

The road to hell is paved with good intentions, and also paved with Obamacare subsidies and fraud.

Under Biden’s disastrous expansions via the 2021 American Rescue Plan and 2022 Inflation Reduction Act, Democrats obliterated the 400 percent federal poverty level income cap, turning Obamacare into a giveaway for the affluent and a magnet for scammers. Republicans’ calls for verification and safeguards have been met with Democratic obstructionism, resulting in another failed government program that’s hemorrhaging money with zero oversight.

A December 2025 Government Accountability Office (GAO) report estimates of up to $27 billion in annual improper payments.

The GAO report reveals that they have not assessed risks in Obamacare since 2018 despite having identified fraud risks in 2014-2016:

So far, we’ve found that fraud risks have persisted since we first reported on this (2014-2016). For example, we were able to get subsidized insurance for fake enrollees. We also found some issues with enrollees’ Social Security numbers that could indicate identity fraud.

The program’s fraud risks were last assessed in 2018, even though the program and its risks have since evolved.

The December report highlights seven different areas of fraud, waste and abuse:

1. Fake Identities Approved for Subsidies

GAO investigators created 20 fictitious identities using fake or invalid Social Security numbers (SSNs). The federal marketplace approved subsidized coverage for 19 of them in 2025, with 18 still active as of September 2025—costing taxpayers over $10,000 monthly in fraudulent subsidies.

2. Subsidies to Deceased Individuals

In 2023, over 58,000 SSNs matching deceased individuals received premium subsidies, resulting in millions paid to insurers for non-existent coverage.

3. Overuse of Social Security Numbers

GAO found tens of thousands of SSNs used for more than a year’s worth of coverage in a single year (over 29,000 in 2023 and nearly 68,000 in 2024), indicating potential identity theft or duplicate enrollments.

4. Unauthorized Enrollments and Plan-Switching by Rogue Brokers

Consumers were enrolled or switched into plans without consent, often by unscrupulous brokers chasing commissions. CMS received over 275,000 complaints in 2024 alone. Examples include:

• Couples enrolled unknowingly while having employer coverage → leading to tax bills or lost refunds.
• Fraud rings targeting vulnerable populations (e.g., homeless or addicts) for millions in subsidies.

5. “Ghost” or Zero-Claim Enrollees

Nearly 40% of fully subsidized enrollees (about 12 million in 2024) had no medical claims—double the pre-enhanced subsidy rate and far higher than employer plans (15%). This suggests widespread improper or fraudulent enrollments, often of people unaware they were signed up.

6. Unreconciled Subsidies and Income Misreporting

Over $21 billion in 2023 subsidies went unreconciled (enrollees didn’t file taxes to verify income eligibility). Lax verification allowed income misstatements for larger subsidies, with estimates of 5–6.4 million improper enrollees in recent years.

7. Subsidies to Ineligible Recipients

Critics note cases of subsidies going to wealthy households (post-income cap removal) or potentially ineligible non-citizens, though lawfully present immigrants qualify.

These issues stem from enhanced subsidies making plans free or nearly free, combined with weakened verification and auto-reenrollment.

Covered California

Nowhere is this failure of Obamacare more evident than in California, where Covered California’s approximate 1.7 million subsidy addicts could see premiums explode in 2026 without another Democratic-engineered extension. But why should hardworking Californians subsidize this mess?

Democrats’ refusal to attach reforms now reeks of entitlement, prioritizing political interests over taxpayer protection. It’s emblematic of Democrats’ broader pattern: balloon government programs with no regard for sustainability, then cry “cliff” when the bill comes due, all while demonizing Republicans for demanding responsibility.

As Washington hurtles toward another shutdown, Senator Cortez-Masto lays bare Democrats’ addiction to spending: even when fraud is admitted, they demand more money first. Taxpayers deserve reforms now, not empty promises. Anything less is just another Democratic swindle.