Fake Applications Approved For Obamacare Subsidies – Again

According to a recent report, false Obamacare applications are being approved offering subsidies worth thousands of dollars – again.

Despite efforts made by the administration to crack down on fake applicants, on Thursday, the Government Accountability Office (GAO) found that 9 out of 12 false applications were approved.   

The Washington Examiner reported that, Republicans in the House have criticized President Obama’s administration for not putting forth greater efforts to combat the erroneous applications from being approved.

“This report confirms what we’ve known all along: Bad actors are taking advantage of loose enforcement mechanisms to access highly subsidized healthcare plans,” said Reps. Fred Upton, R-Mich., Kevin Brady, R-Texas, and Sen. Orrin Hatch, R-Utah, in a joint statement.

Because the marketplace is new, the administration allowed for multiple lengthy enrollment periods in efforts to help citizens who were experiencing trouble with the new requirement.

Since 2014 the administration has known about the ongoing issues, as the GAO conducted a test on healthcare.gov where they submitted 12 false identities that applied for Obamacare. Of the 12, 11 were approved for the subsidies valuing approximately $30,000.

But the lenient rules of the marketplace allow for insurance manipulation to occur such as allowing people to sign up when they get sick and drop out when they get better. Insurers are then left to pick up a higher tab forcing them to lose money on the health exchanges.

A report released in February, after previous instances of the issue occurring, provided recommendations for the administration to take to improve its verification process, including  a fraud-risk assessment to look for holes in the marketplace.

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