Government May Be Paying Too Much In Obamacare Subsidies, Or Maybe Not, They Don’t Know

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This is ridiculous. The federal government “might” be paying too much in Obamacare subsidies for up to a million people, but they don’t know if they are or not. So they’ll just keep paying and figure it out later. I wish I was kidding.

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The government may be paying incorrect subsidies to more than 1 million Americans for their health plans in the new federal insurance marketplace and has been unable so far to fix the errors, according to internal documents and three people familiar with the situation.

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The problem means that potentially hundreds of thousands of people are receiving bigger subsidies than they deserve. They are part of a large group of Americans who listed incomes on their insurance applications that differ significantly — either too low or too high — from those on file with the Internal Revenue Service, documents show.

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The government has identified these discrepancies but is stuck at the moment. Under federal rules, consumers are notified if there is a problem with their application and asked to upload or mail in pay stubs or other proof of their income. Only a fraction have done so, according to the documents. And, even when they have, the federal computer system at the heart of the insurance marketplace cannot match this proof with the application because that capability has yet to be built, according to the three individuals.

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So piles of unprocessed “proof” documents are sitting in a federal contractor’s Kentucky office, and the government continues to pay insurance subsidies that may be too generous or too meager. (Read More)

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If you happen to be one of those people receiving a higher subsidy than you should you might want to start putting some money away. Once they get this figured out you’re going to have to pay the money back. So they aren’t really doing you any favor.

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