H.R. 2775: The No Subsidies Without Verification Act

September 10, 2013

Background:

On July 5th, the Department of Health and Human Services (HHS) released more than 600 pages of Obamacare regulations which included an announcement that the government would no longer verify that each applicant for the exchange subsidies are actually qualified for the assistance. Instead, the administration would rely on self-attestation and sample audits to “protect” the integrity of this new $1 trillion entitlement program. HHS later announced a change in this policy and stated it would extend the sample population to 100%.

The Problem:

  • Individuals who self-attest will still receive taxpayer-funded subsidies during the audits, which could take up to 6 to 12 months.
  • Not verifying eligibility could equate to approximately $250 billion in fraudulent payments through Obamacare subsidies, all to prop up a law that the American people continue to overwhelmingly reject. (Source: WSJ)
  • No official changes have been made to the rule—there is no guarantee to the American people that applicants will be verified.
  • No information has been provided to Congress on how long HHS will take to verify eligibility.

The Solution:

H.R. 2775, the No Subsidies Without Verification Act, demands that accurate verification systems be put in place before subsidies are dispersed. This sensible measure requires the HHS Inspector General to verify subsidies are issued to only eligible Americans. H.R. 2775 prevents fraudulent Obamacare subsidy claims before they go out – ending the pay and chase of fraudulent claims that plagues our health care system.
 

Verification Protects Taxpayer Dollars. The Democrat-led Senate Appropriations Committee has already unanimously passed legislation (S. 1284, Section 226) affirming its belief that the Obama administration must verify eligibility before doling out taxpayer-funded subsidies. Additionally, a Senate companion measure has been offered by Senator Coburn, S. 1455.