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

May 17, 2014 9:41 a.m.

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.

Your subscription could not be saved. Please try again.
Your subscription has been successful.
Latest Livewire
Comments are now Members-Only

Non-members are still able to read comments, but will no longer be able to participate. To join the conversation, sign up now and get:

30% Off Annual Prime Membership

TPM strives to build as inclusive a community as financially possible. We offer FREE memberships to those experiencing financial hardship and FREE memberships for students.

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