Massive Fraud Likely in Obamacare Exchange Subsidies
The Government Accountability Office has just released a report detailing the massive opportunities for fraudulently getting tax credits in Obamacare’s health insurance exchanges. Obamacare sends billions of taxpayers’ dollars to health insurers which operate in these exchanges – $37 billion last year alone. These tax credits are used to discount premiums for plans offered in the exchanges.
During undercover testing, the federal Marketplace approved subsidized coverage under the act for 11 of 12 fictitious GAO phone or online applicants for 2014. The GAO applicants obtained a total of about $30,000 in annual advance premium tax credits, plus eligibility for lower costs at time of service. The fictitious enrollees maintained subsidized coverage throughout 2014, even though GAO sent fictitious documents, or no documents, to resolve application inconsistencies.
11 out of 12: A failure rate of 92 percent. And these were government employees acting as stooges, not hardened fraudsters. I am sure GAO was shocked that so many not only got approved, but continued to receive subsidies through the year.
The report also describes almost half a million actual cases where details that would have disqualified an applicant for tax credits – ranging from mismatched Social Security numbers to incarceration – remained unresolved through the enrolment year.
What is remarkable is that the federal and state government established brand new bureaucracies – so-called exchanges – to manage the applications, not trusting online or in-person insurance agents and brokers to do the job.
92% fraud rate in Obamacare.
It’s like Al Capone is in charge of the central planners in Washington DC. It’s Chicago values.
Maybe I should start my own insurance company that only insurs poor people who do not exist. I would not have to worry about paying claims. Nor would I worry about billing enrollees late on their premiums. I could set premiums as high as I want.
You’re right guys, it’s the Chicago way. Patients that don’t exist, voters that don’t exist.
Perfect.
Yes, but the beauty of the arrangement is that the subsidies do exist!
What can one say as “Obama and His Army of Minions March On!!!!!!!
If the GAO did a report on the fraud in Medicaid it would be just as bad as in Obamacare. I’m sure more is spent per person on Medicaid than per person on Obamacare.
We don’t know how much Medicaid costs per person in the States. The corruption is in both political parties as they sucker the American taxpayers.
Somebody should be spending time in prison.
That’s why I believe the system of federal matching funds is bad. States would have more incentive if they were responsible for 100% of all fraudulent payments rather than only 30%.
I figured the ACA was fraudulent when it included risk-corridors for health insurers. The GAO’s report just reinforces my suspicions.