As many as half a million people who signed up for health insurance under the Affordable Care Act this year may lose coverage or need to pay more because they haven’t submitted proper documentation, the Obama administration warned Monday.
Some 115,000 people are poised to be cut from insurance rolls at the end of the month because they haven’t verified their citizenship or immigration status.
Another 363,000 people haven’t sent in the necessary forms proving their income, a key requirement for calculating the size of government subsidies some consumers are eligible to receive under the law.
Together, that represents about 10% of those who signed up for coverage on new federal marketplaces created by the law.
It does not include people in California and other states operating their own marketplaces this year.
Without proper income documentation, some consumers may be forced to repay subsidies that they improperly received, said the Department of Health and Human Services’ Andy Slavitt, who oversees the marketplaces.
The law allows Americans who don’t get health benefits at work to shop among plans on the marketplaces. Those making less than four times the federal poverty level — or about $94,000 for a family of four — qualify for subsidies.
It is sad that last October when Obamacare was rolled out that millions of Americans were dropped by their current healthcare providers and still little is seemingly being done to fix the situation. As the economy seems to still be in limbo, and government policies that have wasted more money than ever before, it is unfair to pass this incredible burdon down to future generations.