WASHINGTON--(BUSINESS WIRE)--Today, the Council for Citizens Against Government Waste (CCAGW) praised the House of Representatives for passing H.R. 2775, sponsored by Rep. Diane Black (R-Tenn.). The bill would ensure that federal subsidies for individuals and families applying to the exchanges under the Patient Protection and Affordable Care Act (PPACA), or Obamacare, would be subject to income verification, as required by the law. The bill passed by a vote of 235-191. The Senate version, S. 1455, was introduced on August 1, 2013 by Sen. Tom Coburn (R-Okla.).
According to multiple sources, including The Wall Street Journal and The Washington Post, the Department of Health and Human Services (HHS) announced in July that it would not be able to verify income eligibility for applicants to health exchanges when they open on October 1, 2013. The department plans to allow applicants to “self-attest” to projected household income and whether or not they are already covered by health insurance though their employers. For at least a year, and in contravention of the PPACA, the exchanges will simply accept applicants’ claims on household income at face value, with no additional requests for proof of validity.
Rep. Black’s legislation would suspend any subsidies to applicants until the HHS Secretary can certify that there is a program in place to verify applicants’ income and coverage requirements. Following passage of the bill, Rep. Black stated that “There is no reason for Harry Reid and Members of the Senate not to protect taxpayers from fraud and abuse and follow the House’s lead by passing my legislation without delay.”
Although the bill passed, it was opposed by 191 Democrats, with only five voting in favor. House Democratic Whip Steny Hoyer (D-Md.) dismissed the potential for fraud and the significant losses to taxpayers, and released a statement alleging that the bill was only another attempt to repeal the PPACA by undermining its implementation.
“H.R. 2775 would not only help safeguard taxpayers from the predations of fraudsters and save potentially billions of dollars, it also has the added bonus of complying with federal law. The application platform for the health exchanges should not move forward until the verification system is in place and working reliably to ensure that federal subsidies are going only to those who truly need them,” said CCAGW President Tom Schatz. “This bill coincides with CCAGW’s goal of eliminating fraud and waste in the healthcare system; it is simple common sense.”
The Council for Citizens Against Government Waste (CCAGW) is the lobbying arm of Citizens Against Government Waste, the nation’s largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.
