Big Problems with the ‘Honor’ System

The administration decided in July to allow people to self-certify their personal information when requesting subsidies from the Obamacare exchanges. Major problems will result, including shady vendors committing fraud and taxpayers on the hook for any misinformation submitted.

“Tens of thousands of unmonitored and, quite possibly, unscrupulous salespeople are going to be out signing up as many people as possible, eligible or not,” says Phil Kerpen, president of American Commitment. “The subsidies go directly to insurance companies. When it turns out people were scammed into signing up but are not actually eligible, they personally hold the bag for paying back potentially thousands of dollars.”

To avoid IRS clawbacks, “no subsidies should flow until there is a verification system in place,” Kerpen says.

Rep. Diane Black (R-TN) has introduced H.R. 2775 to do just that. With 43 co-sponsors, the bill would require the Secretary of HHS to certify that a program to verify household income and other qualifications is operational before the exchanges can start giving out subsidies.

Rep. Gus Bilirakis (R-FL) plans to introduce a bill requiring the Obama administration to verify information provided to the exchanges before subsidies could flow and before the administration could implement any Obamacare tax provision.  Before Obamacare taxes can levy, the Secretary of the Treasury would have to certify that the reporting requirements relating to employer status, employee income levels, and health care status can be implemented with 100 percent accuracy and without fraud.

The Bilirakis bill would block, among other things, the:

Health Insurance Tax
Individual Mandate
Employer Mandate, and
Medical Device Tax



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