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Obamacare’s Invitation to Fraud
When the Obama administration announced last Tuesday that they would be delaying Obamacare’s employer mandate and its associated reporting requirements by a year, many observers (myself included) noted that this could create problems for verifying eligibility for subsidies in the Obamacare exchanges.
Many if not all of the state exchanges, and presumably also the federally-run exchanges, were planning to use the required employer reports to facilitate the eligibility reconciliation that you have to do at tax filing time when people receive advanceable tax credits like those set to be offered in the exchanges. If employers weren’t required to provide reports for 2014, the process of confirming eligibility (that is, confirming that people receiving subsidies had in fact not been offered affordable insurance coverage at work) would become more difficult to pull off, since it’s not really clear what other data sources the exchanges would have, and the exchange subsidy system would therefore become that much more difficult to manage. On Thursday, Reuters quoted the spokeswoman for the largest and most important of the prospective state-run exchange systems echoing this concern.......................
Data on what coverage employers offer and what it costs, to be provided to the Internal Revenue Service, is also meant to help verify whether consumers qualify for government subsidies to purchase health insurance on state- and federally run online exchanges that open on October 1. President Barack Obama's healthcare reform needs millions of people to enroll in coverage sold on the exchanges in their first year in order to work, spreading the financial risk among millions of consumers.
Delay in Obamacare requirement puts onus on the honor system
If you thought the delay in the employer mandate was bad news for Obamacare, just wait. On Friday, Sarah Kliff and Sandhya Somashekhar of the Washington Post discovered that the Obama administration had buried in the Federal Register the announcement that the government won’t be able to verify whether or not applicants for Obamacare’s insurance exchange subsidies are actually qualified for the aid, in the 16 states that are setting up their own exchanges. Instead, until at least 2015, these states will be able to “accept the applicant’s attestation [regarding eligibility] without further verification.”
Not Qualified For Obamacare's Subsidies? Just Lie -- Govt. To Use 'Honor System' Without Verifying Your Eligibility
On October 1st, millions of Americans will be expected to begin clicking on to state healthcare exchange websites to enroll in Obamacare, an influx of web traffic and complex technological interoperability that experts say could spark a technological meltdown.
“Everyone is waiting for something to go wrong,” Dan Maynard, president of Connecture—a software developer working on Obamacare state exchanges—told Reuters.
Rick Howard, a research director at tech advisory firm Gartner, said the digital complexity and scale of Obamacare’s online architecture will be unprecedented.
Obamacare's Online Exchanges Vulnerable to Tech Meltdown