Monday, May 05, 2014

The ObamaTax and the IRS

Were the stakes not so high, this could be funny:

"The investigators charged with keeping tabs on the Internal Revenue Service have no way to tell how well they can detect health insurance premium tax credit fraud."

No kidding

The problem is that the distinction between "fraud" and "honest mistake" is a very thin line as regards the ObamaTax. After all, in applying for a subsidized individual plan through the Marketplace, one is asked to rely on "anticipated" income in an economy that is anything but robust. Some folks have fairly regular, steady incomes, but a lot have spikes, and dry spells (think commissioned sales people, entrepreneurs, etc).

And of course,between the poorly-secured site and unvetted Navigators, the system itself is fraught with the potential of major fraud on the government's end.

In related developments, the IRS has "given the new public health insurance exchanges rules for reporting on the private health coverage they have sold."

To wit: they've released the long-awaited Form 1095-A, which insurers must use to report - monthly(!) - how many victims customers they've "enrolled." The government will then use this info to bolster the tax credits program (see Fraud above).

Exit question: is it just me, or is it, well, curious that the form doesn't include how many enrollees have actually paid for their new plans?
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