Saturday, May 31, 2014

Federal health-care subsidies may be too high or too low for more than 1 million Americans

See Click here to read the Washington Post article by Amy Goldstein and Sandhya Somashekhar. Excerpts: 
"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,"

"potentially hundreds of thousands of people are receiving bigger subsidies than they deserve."

[they were] "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."

[they have been] "asked to upload or mail in pay stubs or other proof of their income. Only a fraction have done so,"

"behind the scenes, important aspects of the Web site remain defective — or simply unfinished."

"the Obama ... promised ... last year that a thorough income-verification system would be in place."

"flaws in HealthCare.gov blocked many naturalized citizens or permanent legal residents, requiring them to submit immigration documents that are, like the income information, caught in a backlog."

"difficulty in straightening out discrepancies affects an especially large number of consumers. Of the roughly 8 million Americans who signed up for coverage this year under the health-care law, about 5.5 million are in the federal insurance exchange. And according to the internal documents, more than half of them — about 3 million people — have an application containing at least one kind of inconsistency."

"But because of the trouble verifying incomes, the government has not lowered or raised anyone’s subsidies."

"people out there who have made unintentional errors, and in a few years will be subject to massive tax bills,"

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