COMMITTEE on WAYS and MEANS

Chairman Dave Camp

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Administration Sends Billions of Taxpayer Dollars Out the Door Without Income Verification

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Washington, Jul 1 | comments
Today, the Health and Human Services Office of Inspector General (OIG) released a report revealing that the Administration did not have the capability to verify eligibility for tax subsidies in the ObamaCare Exchanges.  The report found that out of 2.9 million people who applied for subsides, 2.6 million had unresolved inconsistencies related to “citizenship, national status, and lawful presence; income; and employer-sponsored minimum essential coverage.”  

Yet, despite the Administration knowing that they did not have a verification system up and running, they sent billions of taxpayer dollars out the door knowing that the Administration will not be able to fully recuperate the money sent in error.  Further, then-HHS Secretary Sebelius mislead Congress and American taxpayers by certifying that these subsidy payments were verified.

“I certify that the American Health Benefit Exchanges (Marketplaces) verify that applicants for advance payments of the premium tax credit and cost-sharing reductions are eligible for such payments and reductions…I am providing this certification before the first advance payments of the premium tax credit are made.”

The OIG Report makes clear this certification was a sham.

"The Federal marketplace was unable to resolve 89 percent of inconsistencies.  As of the first quarter of 2014, the Federal marketplace was unable to resolve about 2.6 million of 2.9 million inconsistencies because the CMS eligibility system was not fully operational. It was unable to resolve inconsistencies even if applicants submitted appropriate documentation. These inconsistencies pertained to citizenship, national status, and lawful presence; income; and employer-sponsored minimum essential coverage."


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