Your ObamaCare subsidies are probably wrong, but don’t worry. We’ll bill you later.

posted at 1:01 pm on May 17, 2014 by Jazz Shaw

Remember back in the bad old days when the ObamaCare website didn’t work and everyone had a good laugh over it? Ah… good times. But then they got it fixed, millions of people signed up and we all marched happily forward into the future. Or did we?

Rick Moran wrote a piece for American Thinker this week highlighting a recent report showing that, well… math is still hard.

The Washington Post has learned that more than a million Americans who signed up for Obamacare insurance policies are being paid too much or too little in taxpayer funded subsidies.

Bad enough, right? It gets worse.

The process by which the government informs these taxpayers that they are receiving an incorrect subsidy has broken down, or is not even in place yet. In their unholy rush to sign people up and “prove” Obamacare “works,” the administration has created a monstrously confusing situation that won’t be resolved any time soon.

The original report has all the details, and the part of this story that is both frightening and aggravating is that this is apparently yet another problem which they knew about all along, but never bothered to mention. And it has a very direct impact on hundreds of thousands – if not millions – of Americans. In the best case scenario, the subscriber may be receiving too little in subsidies. This makes life a bit harder in the short term, but if they manage to come up with the cash to keep their policy, then after the discrepancy is noted and resolved, they’ll get the money back. But for the rest of the users who have been incorrectly assigned, they may think they’re getting a really good deal on their insurance. Then, when tax time comes around next year, they’ll be slammed with a bill for the “overpayment” they’ve been receiving without even knowing it.

The government has identified these discrepancies but is stuck at the moment. Under federal rules, consumers are notified if there is a problem with their application and asked to upload or mail in pay stubs or other proof of their income. Only a fraction have done so, according to the documents. And, even when they have, the federal computer system at the heart of the insurance marketplace cannot match this proof with the application because that capability has yet to be built, according to the three individuals.

So piles of unprocessed “proof” documents are sitting in a federal contractor’s Kentucky office, and the government continues to pay insurance subsidies that may be too generous or too meager. Administration officials do not yet know what proportion are overpayments or underpayments. Under current rules, people receiving unwarranted subsidies will be required to return the excess next year.

And remember, some of the key portions of the back end of the site are not simply malfunctioning due to unforeseen technical problems. That could be almost forgivable if you lean toward being an ObamaCare apologist. But that’s not the case here. These are critical functions of the application which were never even built and the government knew it. I’ll leave the parting shot on this story to Rick, who sums it up nicely.

They’re not only liars, they’re sneaky liars. Just when were they going to get around to telling us about this problem?

It’s incredible that the back end of the website still isn’t working because much of it hasn’t been built yet. It’s unconscionable that they would spend a billion dollars to push these policies and subsidies on Americans knowing full well that there was no way to verify income and get the correct amount of subsidy. And it’s ridiculous that sometime in the future, hundreds of thousands of Americans are going to be shocked that they owe the IRS hundreds and maybe thousands of dollars.

That about sums it up.


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At least you don’t have to worry as much as the families of those who were shoved into Medicaid – the grave robbers will be going after their assets, not yours.

corona79 on May 17, 2014 at 1:05 PM

This is what happens when you trumpet “No Income Verification For the First Year,” folks…

Newtie and the Beauty on May 17, 2014 at 1:06 PM

I don’t remember an exception for the feds in states’ Consumer Protection laws.

Rix on May 17, 2014 at 1:09 PM

hmmm similar to Liar loans in the mortgage world…collapse the system—Govt owns most of the mortgages ala Fannie/Freddie.

Here we go again in the healthcare world….collapse the system…on the way to single payer.

UGH

CoffeeLover on May 17, 2014 at 1:13 PM

Speaking of Reports:

A New Management Structure for a New Phase of the Affordable Care Act

For the Center for American Progress report, see link.reuters.com/nyk49v
=======================

Endnotes and citations are available in the PDF version of this issue brief.

President Barack Obama’s nomination of Sylvia Mathews Burwell as the next secretary of health and human services presents an opportunity to look afresh at the decision-making processes for implementation of the Affordable Care Act.

More than 8 million Americans have already signed up for private health insurance through the marketplaces created under the Affordable Care Act—exceeding all expectations. A few months ago, no one would have thought this achievement was possible.

The federal marketplace—which sells health plans in 34 states—has come a long way. When it was first launched in October 2013, the federal marketplace was virtually unusable. Its website, HealthCare.gov, was slow, produced error messages, and crashed frequently. For weeks, the website was down an estimated 60 percent of the time. But a crisis management team led by Jeffrey Zients repaired more than 400 software bugs and significantly upgraded hardware to improve the system’s capacity.

The results were significant:
(More…)
=========

Download the report:
PDF
=========

http://www.americanprogress.org/wp-content/uploads/2014/05/ACAmngment_0517.pdf

Read it in your browser:
Scribd
===========

http://www.scribd.com/doc/224172854/A-New-Management-Structure-for-a-New-Phase-of-the-Affordable-Care-Act?secret_password=L79lTpDm3gg4xI5rHDJq
=============================================

http://www.americanprogress.org/issues/healthcare/report/2014/05/17/89780/a-new-management-structure-for-a-new-phase-of-the-affordable-care-act/

canopfor on May 17, 2014 at 1:14 PM

…so how long do you have to keep ‘reading it’….to find out ‘what’s in it’?

KOOLAID2 on May 17, 2014 at 1:16 PM

This. Will. Never. Work.

kcewa on May 17, 2014 at 1:16 PM

This is why we can’t have nice things.

Newtie and the Beauty on May 17, 2014 at 1:21 PM

Children run the land

Schadenfreude on May 17, 2014 at 1:27 PM

OT: More VA shenanigans

lineholder on May 17, 2014 at 1:32 PM

lineholder on May 17, 2014 at 1:32 PM

Reminds me of an old political saw:

If you can’t get someone out of office, elect them to a different office farther away.

Newtie and the Beauty on May 17, 2014 at 1:38 PM

I for one can hardly wait for complete government control of our healthcare in the form of a socially just and cost-efficient single payer system. /s

How VA hospitals are a government-run disaster

Drained Brain on May 17, 2014 at 1:45 PM

These incompetent liberals couldn’t manage a lemonade stand…… the level of incompetence is mind boggling and defies description. Yet they shrug it off in their arrogance. The repubics had better take this and beat the living crap out of oba-mao and his cronies! Although, we are known as the party of stupid.

ultracon on May 17, 2014 at 1:46 PM

Anyone seen Tlaloc lately?

rogerb on May 17, 2014 at 1:49 PM

These incompetent liberals couldn’t manage a lemonade stand…… the level of incompetence is mind boggling and defies description. Yet they shrug it off in their arrogance. The repubics had better take this and beat the living crap out of oba-mao and his cronies! Although, we are known as the party of stupid.

ultracon on May 17, 2014 at 1:46 PM

What we need is a real Czar with real powers to make everything tickety-boo:

Obama supporters call for ObamaCare czar to avoid another rollout disaster

I nominate General Shinseki once he’s finished fixing the VA.

Drained Brain on May 17, 2014 at 1:56 PM

Just for fun! in October 2013 after many tries on the ACA web site finally got in and got a message back on 27 Oct 2013 that I was approved for Medicaid, need to do nothing and would be contacted later. Today 17 May 2014 I was contacted for the first time and told what the next styep was to apply for coverage.

jpcpt03 on May 17, 2014 at 1:56 PM

I don’t remember an exception for the feds in states’ Consumer Protection laws.

Rix on May 17, 2014 at 1:09 PM

Touché, Rix, touché. Cupla thousand lawsuits for fraud under state law ought to be interesting, eh? Where’s my fedrully-funded Consumer Protection Agency? The gummint forced me, by law, to purchase this product, promised me subsidies, then sent me a bill for their overpayment? Treble damages for fraud, then cover my liar bills,er, lawyer bills.

DublOh7 on May 17, 2014 at 2:09 PM

I don’t remember an exception for the feds in states’ Consumer Protection laws.

Rix on May 17, 2014 at 1:09 PM

Touché, Rix, touché. Cupla thousand lawsuits for fraud under state law ought to be interesting, eh? Where’s my fedrully-funded Consumer Protection Agency? The gummint forced me, by law, to purchase this product, promised me subsidies, then sent me a bill for their overpayment? Treble damages for fraud, then cover my liar bills,er, lawyer bills.

DublOh7 on May 17, 2014 at 2:09 PM

Powerline points out a suit has been filed over another lie:

LIES OF OBAMACARE

Reuters reports the filing of a notable Obamacare-related lawsuit against Blue Shield of California:

Consumers who purchased new health plans from Blue Shield of California have sued the insurer, claiming they were misled into thinking the insurance would cover their desired doctors and hospitals.

Reuters doesn’t bother to point out the similarity of the allegations against Blue Shield to Barack Obama’s incessantly repeated falsehoods promoting the enactment of Obamacare. But we digress…

Drained Brain on May 17, 2014 at 2:29 PM

Time for a class action lawsuit against every person that voted for Obama to recover the increased health insurance costs.

chimney sweep on May 17, 2014 at 2:54 PM

I was unemployed due to a disability for over a year recently.
January one I got Obamacare coverage with very low deductibles and maximum out-of-pocket.
I had over $100,000 worth of physician work and surgery and hospital care.
A month later, I won my disability case and got a check for the last eight months plus a monthly check now until I turn 65; I cannot return to work.
I notified my health insurance and they change the plan accordingly: higher deductible, higher out-of-pocket, higher monthly fee.

Oh, it means I owe an additional $19,000 that I do not have, did not budget for, did not know I would owe and is a big percentage of my new annual income.
That is for the surgery and hospital stay I already have done.

Surprise.

The IRS will be dunning me for the next few years for this money while I sell a car and eat less meat to pay if off.

Surprise.

Tard on May 17, 2014 at 3:01 PM

At least you don’t have to worry as much as the families of those who were shoved into Medicaid – the grave robbers will be going after their assets, not yours.

corona79 on May 17, 2014 at 1:05 PM

How many of them are even aware of this? I could probably count them on my fingers.

Hill60 on May 17, 2014 at 3:08 PM

…I’m too pissed to comment…reading what has happened to Tard…and others.

KOOLAID2 on May 17, 2014 at 3:20 PM

I’ll post this on QOTD too, but it’s worth reading.

Here’s the amazing quote…

In a line that says a lot about where health care is heading under Obamacare, an insurance executive offering plans through the law was quoted in the New York Times on Tuesday as saying, “We have to break people away from the choice habit that everyone has.” Marcus Merz, the chief executive of PreferredOne, made the remark in an article describing the trend toward narrow networks in health care plans…

OK, Mr. Merz, let me do it for you…
I am going to choose your wife, your clothes, your occupation, your entertainment, our place of residence, and your food. All of which are just as intimate and personal issues as our choice of doctors and medical care. But I’ll do it because I want to “break you away from the choice habit that everyone has”.

It doesn’t get more Orwellian than that…we can’t vote these people out soon enough.

Doc Holliday on May 17, 2014 at 3:26 PM

In the best case scenario, the subscriber may be receiving too little in subsidies. This makes life a bit harder in the short term, but if they manage to come up with the cash to keep their policy, then after the discrepancy is noted and resolved, they’ll get the money back.

The check is in the mail! LOLOL!

rightside on May 17, 2014 at 3:28 PM

Can I get an O’care subsidy for its ruining my mental health?

vnvet on May 17, 2014 at 3:54 PM

Dude, and by “subsidies” let’s not forget what we’re really talking about:

forcibly taking money from me (taxes) and giving it to someone else.

Lance Corvette on May 17, 2014 at 4:24 PM

Dude, and by “subsidies” let’s not forget what we’re really talking about:

forcibly taking money from me (taxes) and giving it to someone else.

Lance Corvette on May 17, 2014 at 4:24 PM

Would you settle for calling them investments?

Drained Brain on May 17, 2014 at 4:34 PM

They hate your guts and are too cowardly to admit that they would like to simply liquidate you.

Murphy9 on May 17, 2014 at 4:51 PM

Tis why, despite my losing health insurance May 1, I don’t sign up for obaka non-care. I’ll pay my fine next year.

ladyingray on May 17, 2014 at 5:25 PM

Just because I don’t think anyone should forget that under our first affirmative action president:

1. Close to 3 BILLION DOLLARS was spent wasted on useless websites.

2. Those websites still don’t have a back end to process payments.

3. Those websites still have next to ZERO security.

4. Wait lists in the current government run health care (VA) have killed people but in NO way is this a predictor of Obama-democrat Care. NONE…whatsoever.

AND

5. The Obama democrat health care website took longer than WWII and has the above core-basic problems.

If this is what the fascist-democrat party calls SMART Power!!!1111!!!elebinty, please give me some dumb power.

jukin3 on May 17, 2014 at 5:54 PM

How could I forget.

In old USA you hate health insurance.
In new and glorious Obama USSA health insurance hate you.

jukin3 on May 17, 2014 at 5:58 PM

It is shameful that in the United States, so very many city gates are left unadorned by the heads of traitors and enemies of the populace.

Would that we as a society could correct that deficiency. One bureaucrat at a time.

orangemtl on May 17, 2014 at 9:20 PM

So the insurance companies have a “risk corridor” that prevents them from losses by limiting profits. How does the party of the little guy explain not offering the same protection for people who work for a living, and then sending the bill to the Koch boys, instead of blowing my tax money?

DublOh7 on May 17, 2014 at 10:23 PM

y’all get back to me when this monstrous POS is running properly. In the means while, I’m just one of millions who defy the law.

BigAlSouth on May 18, 2014 at 7:28 AM

It was on the front page of today tribune review in pittsburgh pa.

gwhh on May 18, 2014 at 10:50 PM