Mark Cuban Slams SEC, DOJ For Ignoring 'Material Risk' From Health Insurers Fraud, Warns of $35 Billion Taxpayer Exposure

Billionaire entrepreneur Mark Cuban, questioned the lack of action by the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) against health insurers on Thursday.

Risks In Zero-Premium Enrollments

Cuban took to X to highlight the insurers’ failure to verify if zero-premium enrollees were aware of their enrollment, labeling it as “fraud” and a “material risk” to their earnings. He also suggested that the $35 billion in aggregate premium tax credits could and should be repaid to taxpayers.

Cuban wondered if any short sellers were discussing this issue, as they typically conduct more due diligence than anyone.

Can someone explain to me why @SECPaulSAtkins and @DOJ have not gone after the insurance companies that didn't check if zero premium enrollees actually knew they had been enrolled ?

Why haven't they disclosed that this fraud is a material risk to current and future…

— Mark Cuban (@mcuban) December 11, 2025

Cuban’s post came in response to a Politico report on Thursday that health insurers are now openly acknowledging widespread fraud in the Affordable Care Act (ACA) marketplace, a sharp reversal after years of downplaying the issue.

Their admission is part of a final push to persuade Republicans to renew enhanced Obamacare subsidies that have significantly boosted insurer profits since 2021. But despite heavy lobbying and arguments about affordability for millions, GOP lawmakers show little interest in maintaining the higher subsidy levels enacted during the pandemic.

The Shark Tank star had previously argued that rising deductibles have effectively turned health insurance into a "scam," because many people can't afford to use the coverage they pay premiums for. When deductibles are so high that patients avoid seeking care, he said they may actually be better off paying out-of-pocket instead of carrying insurance they can't afford to use.

See Also: Why Is Ethereum (ETH) Price Crashing? What Traders Are Saying

DOJ Targets Massive Healthcare Fraud

Earlier in the year, the DOJ dismantled a $14 billion healthcare fraud scheme, resulting in charges against over 320 individuals and the seizure of assets worth over $245 million. The crackdown uncovered fraudsters operating from various countries, including Russia, Eastern Europe, and Pakistan.

UnitedHealth Group (NYSE:UNH) was among the companies under federal scrutiny for its Medicare practices. The investigation centered on how the company used doctors and nurses to inflate or maximize payments from the government. The probe, which began at least a year ago, gained momentum as former employees came forward to share information with federal investigators.

The company reaffirmed the integrity of its operations and began cooperating with the DOJ’s formal criminal and civil requests. UnitedHealth stock plunged 33.26% so far in 2025 amid reports of fraud.

READ NEXT:

• Oracle’s Secret AI Weapon: A Health Care Data Advantage Rivals Can’t Replicate

Image via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.