This is categorized as a clarification of the policy, and not a new CMS position – it’s detailed further in this document, titled “FAQ on Remote Identity Proofing, Remote Identity Proofing Failures and Application Inconsistencies (Federally-facilitated Marketplace)”. You can read it here. But note the nature of what CMS is saying here: they are de facto presuming eligibility of anyone who applied in the open enrollment period, regardless of their immigration status.

While Obamacare specifically says undocumented immigrants are not eligible for subsidized coverage in the exchanges, it’s hard to see this directive to insurers as anything but an encouragement to willfully disregard the spirit of the statute. How long will it take to verify these questionable applications? How much money is being spent right now to subsidize such coverage? How would the government recoup any taxpayer dollars spent subsidizing illegal immigrants who inappropriately obtained subsidies?