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"Good Faith" Costs Taxpayers $21.8 Million

The Washington Free Beacon's Ali Meyer reported today that "$21.8 million in ObamaCare tax credits (were) awarded to individuals who were not eligible to receive them: because of the Affordable Care Act's 'good fairth' provision.

According to Meyer:

"The Affordable Care Act exchanges awarded $21.8 million in advance premium tax credits to individuals who were not eligible to receive them, according to an audit from the Treasury Inspector General for Tax Administration.

"Advance premium tax credits are awarded to those with low to moderate income to help rein in the cost of purchasing health care insurance on the exchanges.

"The Centers for Medicare and Medicaid Services is responsible for overseeing the Obamacare exchanges which should ensure that an individual who applies for the tax credit has his identity verified and that the individual is eligible to receive the payment.

"Individuals are asked a number of questions regarding their personal information such as their address, telephone number, date of birth, and out-of-wallet questions to determine their identity. After this process, individuals can submit an application to see if they are eligible to receive benefits.

"The audit found that the exchanges did not successfully verify the identity of 35,276 individuals, and these individuals received $112 million in advance premium tax credits. The report notes that the majority of these applications—99 percent—had no verification process performed on them, and 251 failed identity verification.

"When we provided the results of our review to the Centers for Medicare and Medicaid Services, management stated that the ACA does not require the exchanges to verify an applicant's identity," auditors said. "Management indicated that identity information is not a requirement or a factor in the determination for an individual's eligibility for health insurance coverage through the exchanges."

"Additionally, auditors found that there were 11,388 individuals who received $21.8 million in tax credit payments even though one or more of the eligibility requirements were not met. For 2,498 of applications, there was no data present indicating that the exchanges did not verify eligibility at all."

Read Meyers' entire article here.

She links to a 58-page Treasury Inspector General for Tax Administration (TIGTA) audit, "Affordable Care Act: Analysis of Tax Year 2014 Nonfilers who received Advance Premium Tax Credit Payments (Number 2017-43-021, February 28, 2017).

Growls readers, who are outraged by such waste and mismanagement in federal programs, are urged to make your views known to your members of Congress. Contact information is available at the Library of Congress' Congress.gov. Taxpayers living in Virginia's Arlington County can contact:

  • Senator Mark Warner (D) -- write to him or call (202) 224-2023
  • Senator Tim Kaine (D) -- write to him or call (202) 224-4024
  • Representative Don Beyer (D) -- write to him or call (202) 225-4376

Ask for a written response. And tell them ACTA sent you.


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