Report Suggests Many Who Signed Up for Obamacare May be Getting Wrong Amount in Subsidies

A doctor in Altamont, Tenn., examines a patient at a rural clinic. (REUTERS)
A doctor in Altamont, Tenn., examines a patient at a rural clinic. (REUTERS)

Hundreds of thousands of Americans signed up for coverage under ObamaCare may be receiving incorrect subsidy payments — some bigger than they actually deserve — from the federal government, The Washington Post reported.

The government has identified the errors, which are the result of discrepancies in income listings on insurance applications and those on file with the Internal Revenue Service, but has been unable to fix the problem, according to the report.

Since income information is used to determine subsidy eligibility under the law, the federal government may be paying insurance subsidies that are too generous or not enough for more than 1 million Americans with income discrepancies.

Only a fraction of consumers notified about the discrepancies have responded to federal health officials’ requests to submit pay stubs or other proof of their income. Officials told The Washington Post they do not yet know the percentages of overpayments or underpayments.

According to internal documents obtained by the newspaper, income discrepancies exist on 1.1 million to 1.5 million out of nearly 4 million applications containing inconsistencies. About 650,000 pieces of evidence for income verification have reportedly been submitted by consumers.

Because technology does not exist to match income “proof” with applications, officials plan to start the work of sorting out inaccurate incomes and subsidies by hand starting this summer, Obama administration officials told The Post.

Americans receiving excess subsidies are currently required to return any unwarranted payments next year, according to the report.

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