Republicans: Honor system" used to self-disclose income.
WASHINGTON D.C. (Texas Insider Report) The federal government is still
missing paperwork for nearly a 500000 people who signed up for insurance over the last year. The Obama Administration announced Monday
it will cut off tax subsidies to about 360000 people if they do not offer
proof of their income in the next two weeks.
At a House Ways & Means Subcommittee on Health hearing last week Republicans accused the Obama administration of using the honor system" when asking consumers to self-disclose their income.
Thats why the White House has lost in my view the trust of the American people" subcommittee Chairman Kevin Brady (right R-TX) told Andy Slavitt principal deputy administrator at the Centers for Medicare & Medicaid Services at the hearing.
Officials will send final notices this week to individuals who signed up for ObamaCare with income levels that didnt match government records. A total of 1.2 million people have had income inconsistencies since the launch of ObamaCare last year.
About 800000 people have since submitted verification. Those who dont confirm their income levels could lose their tax credit and face higher premiums and higher deductibles.
The announcement marks the administrations first move to tackle the politically charged issue of income verification which has remained a key GOP argument against the healthcare reform law.
Nearly 90 of the 8 million people who signed up for ObamaCare have received government subsidies. The average consumer pays $82 per month for a $346 plan receiving an average
subsidy of $264.
The administration had already warned that it would end coverage for the 966000 individuals whose immigration status could not be confirmed by the government.
About 115000 people will lose coverage this month if they do not submit their paperwork Slavitt told reporters Monday.
He stressed that people with income verification issues will not lose their coverage. Slavitt stressed that individuals may be able to regain their coverage during a special enrollment period if they can prove their citizenship status or income level.
If people still pay their premiums and can demonstrate their eligibility theyll continue to be enrolled" Slavitt said Monday.
The administration will continue calling and sending letters to individuals who have not submitted the paperwork. Many have already been contacted up to a dozen times Slavitt said.
Many of the verification problems stem from
the HealthCare.gov website which experienced technical glitches throughout its rollout. Slavitt was brought this year in to resolve some of the problems.
Im hopeful and confident that people will continue to respond to a greater degree" Slavitt said predicting a last-minute surge before the deadline. We recognize that we still have work to do here."
Some immigration advocates have blamed the website as a barrier for people trying to provide documentation of their citizenship.
