Senate Republicans Reject Bill Extending Obamacare Subsidies, Citing Alleged $27 Billion Annual Fraud

Senate Republican Sen. Ron Johnson (R-Wis.) stated Thursday his party’s decision to reject a bill extending enhanced Obamacare subsidies was justified, warning that continuing the program would amount to endorsing tens of billions in waste and abuse annually.

Johnson made the remarks during an appearance on “The Chris Salcedo Show” hours after Senate Republicans voted down the measure. The bill failed 51-48, with four Republicans voting alongside Democrats.

Johnson emphasized his party held firm despite intense political pressure from Democrats, what he described as Democratic misinformation, and media support for extending expanded Affordable Care Act subsidies.

He praised Sen. Rick Scott (R-Fla.) for leading GOP discussions on the issue, including convening experts to detail widespread fraud within the ACA exchange system.

“It’s actually good news,” Johnson said during his segment. “I give Sen. Rick Scott a great deal of credit using his steering committee lunch, bringing healthcare experts, just talking about all the fraud.”

Johnson cited a recent Government Accountability Office investigation that tested the system by attempting to enroll fictitious applicants in federally subsidized Obamacare plans. The report found 23 out of 24 fraudulent applications were accepted, with 18 individuals still receiving subsidies as of September 2025.

According to Johnson, this outcome illustrates what Republicans have long argued: the ACA’s subsidy structure is vulnerable to widespread abuse and federal agencies have failed to implement basic verification safeguards. He stated extending the enhanced subsidies would result in approximately $27 billion in annual fraud.

“Anybody that would vote to extend those enhanced subsidies would vote to extend about $27 billion of fraud,” Johnson added.

While Democrats argued the enhanced subsidies are necessary for affordability, Johnson maintained the debate must address systemic vulnerabilities that could cost taxpayers tens of billions annually if unaddressed.

“Give the GOP credit,” Johnson said. “As much political pressure, as much as the Democrats are lying, as much as the media was backing them up, we said we simply cannot vote to perpetuate that fraud.”