Hold onto your wallets, patriots -- a bombshell report on Obamacare fraud has just handed fiscal conservatives a powerful argument to slam the brakes on extending bloated subsidies.

Fiscal conservatives are leveraging a scathing Government Accountability Office report that exposes staggering fraud and mismanagement in Obamacare subsidies to fight against the extension of enhanced premium tax credits, set to expire at year’s end, while GOP divisions and Democratic pushback keep the debate fiery, as the Washington Examiner reports.

Earlier this month, the GAO unleashed a report that has lawmakers on edge, uncovering potentially tens of billions in fraud and mismanagement tied to Obamacare subsidies.

Uncovering a Fraud-Riddled System

The numbers are enough to make anyone’s blood boil: a 90% failure rate in fraud detection, with GAO investigators successfully obtaining subsidized plans for 23 out of 24 fake applications.

Even worse, the report revealed $94 million in tax credits paid out to deceased individuals—yes, folks, dead people are apparently still getting healthcare -- and nearly $27 billion in improper payments.

Conservatives are zeroing in on zero-premium plans as a key culprit, arguing these freebies have fueled fraudulent enrollments, with the Paragon Health Institute estimating a whopping 6.4 million people enrolled in unused, fully subsidized plans.

Taxpayer Money Down the Drain

The Centers for Medicare & Medicaid Services added fuel to the fire, finding 1.6 million fraudulent dual enrollments in subsidized Obamacare and state Medicaid programs, painting a picture of a system leaking taxpayer dollars at every seam.

Fiscal conservatives are sounding the alarm, using this damning evidence to rally against extending the enhanced premium tax credits, which were initially rolled out as COVID-19 relief under the Biden administration.

Senate Majority Leader John Thune didn’t hold back, stating, “We have spiraling healthcare costs, a program incredibly vulnerable, as is this evidence of, vulnerable to fraud and abuse.”

Democrats Double Down, GOP Splinters

Thune continued, “And again, Democrats are proposing that we do absolutely nothing. No reforms, no additions, no safeguards, just billions more in taxpayer dollars.” His frustration hits the mark—how can we keep funding a program that’s practically begging to be exploited?

Meanwhile, Senate Democrats are gearing up for a show vote on Thursday, pushing for a “clean” three-year extension of the subsidies, seemingly blind to the fraud crisis and banking on public fear of rising costs.

Without these credits, average out-of-pocket insurance costs are expected to double next year, a tough reality for many families, though conservatives insist that plugging the fraud holes must come before any more handouts.

Republican Solutions and Roadblocks

Inside the GOP, there’s no clear consensus -- House Republicans voice deep concern over the fraud findings but struggle to unite on whether to directly link this mess to their opposition to the subsidy extension.

Some Republican senators are floating counterproposals, like Sens. Susan Collins and Bernie Moreno, who want to axe zero-premium plans and enforce a $25 monthly payment to deter abuse, while Sens. Bill Cassidy and Mike Crapo suggest diverting funds to health savings accounts instead of renewing credits.

House Budget Committee Chairman Jodey Arrington laid it bare, saying, “There is absolutely no justification for perpetuating these subsidies or the failed government-controlled Obamacare system Democrats are artificially propping up.” His sharp critique captures the conservative exasperation with a program many see as a bureaucratic disaster, though the path forward remains murky as the clock ticks down.