Report: Obamacare Subsidies Could Be Wrong For More Than 1 Million

President Barack Obama pauses while speaking during a meeting of law enforcement leaders from across the country to discuss immigration reform, Tuesday, May 13, 2014, in the Eisenhower Executive Office Building on th... President Barack Obama pauses while speaking during a meeting of law enforcement leaders from across the country to discuss immigration reform, Tuesday, May 13, 2014, in the Eisenhower Executive Office Building on the White House complex in Washington. The president said there's a two- to three-month window for an immigration overhaul to pass Congress this year before the midterm elections take over. (AP Photo) MORE LESS
Start your day with TPM.
Sign up for the Morning Memo newsletter

More than 1 million of Obamacare’s 8 million enrollees could be receiving either too big or too small of a subsidy under the law, the Washington Post reported on Friday, and the government doesn’t yet have the capability to make corrections.

Government officials are aware that some Obamacare applicants listed an income that doesn’t match what’s on file with the IRS, but the computer system that would verify proof of income hasn’t been built yet. And only a small portion of people have sent in additional evidence of income after being notified of some problem with their application.

The Post cited “internal documents and three people familiar with the situation” in its report.

Administration officials can’t quantify how many people are receiving overpayments and how many are being underpaid, according to the Post. The law stipulates that those who receive too large of a subsidy must make up the difference on their next tax return.

The Post reported that efforts to fix the situation would intensify this weekend, starting with officials doing the work by hand until the computer system is ready.

“We’re working every day to make sure individuals and families get the tax credits they deserve and that no one is receiving a tax credit they shouldn’t,” an administration spokesperson said.

Latest Livewire
30
Show Comments

Notable Replies

  1. Is this any worse than “millions of Americans do not have exactly the right amount of tax withheld”? Next April some of these people will have to pay taxes, others will get refunds.

    People who had steady jobs with employer provided insurance did not go on the exchanges. People who could only guess at what their income would be, whether it would be like last years or not, did.

  2. Avatar for jep07 jep07 says:

    So, considering the ages of most of these people in ACA limbo, how many people NOT covered by Medicaid because their states refused it are now stuck in another twist of misfortune generated by authoritarian Republicans bent on destroying the whole system, with no care about the victims they leave behind?

    They should go ahead and cover us all, THEN sort it out. Leaving so many of us hanging because they demand every T crossed and I dotted is just more proof that their stubborn prejudices matter more to them than the well-being of their constituents.

    COVER us FIRST, and sort it out later, because if the Republicans have their way, people will be denied ANY coverage based on minor technicalities, simply because they, the Republicans, lost the battle to defeat the whole law.

    They waste way too much time and money creating these legal “consolation” conundrums that serve only to assuage their abject disappointment at losing this fight to deny healthcare for all.

    This is happening across the legal spectrum, as progressive laws lean us back towards a better future, intransigent and bitter conservatives waste our precious resources in a futile, expensive and exhausting attempt to create obstacles to achieving that better future.

  3. Avatar for jep07 jep07 says:

    …so, how long until they demand drug testing for everyone who gets a subsidy?

    Don’t discount it, the tiny minority that now controls our process has tried it before. They want anyone they disapprove of to suffer, and that list of disapproval is always growing.

  4. Avatar for darcy darcy says:

    We know “… three people familiar with the situation” know
    Some paid too little
    Some paid too much
    But
    Who paid too little
    Who paid too much
    And
    How little is too little
    How little is too much
    And
    How much is too little
    How much is too much

  5. Another day, another problem with Obamacare. What’s next?

Continue the discussion at forums.talkingpointsmemo.com

24 more replies

Participants

Avatar for system1 Avatar for bdtex Avatar for sooner Avatar for pac Avatar for ncsteve Avatar for jep07 Avatar for mikem42 Avatar for commiedearest Avatar for lio Avatar for more_compost Avatar for ralph_vonholst Avatar for gr Avatar for richardnixonhuberthumphrey Avatar for magical_panda Avatar for tamar Avatar for darcy Avatar for bostonianinbrooklyn Avatar for 538liberal Avatar for foolmemore Avatar for emilianoelmexicano Avatar for Libs Avatar for ThePatriott

Continue Discussion
Masthead Masthead
Founder & Editor-in-Chief:
Executive Editor:
Managing Editor:
Deputy Editor:
Editor at Large:
General Counsel:
Publisher:
Head of Product:
Director of Technology:
Associate Publisher:
Front End Developer:
Senior Designer: