Washington – Some Consumers Risk Losing Health Law Tax Credits

Washington – Thousands of consumers risk losing financial aid for health care premiums under President Barack Obama’s law unless they clear up lingering questions about their incomes, administration officials said Monday.

The Health and Human Services Department said some people who got coverage have reported incomes that don’t square with what the government has on record. At least 279,000 households with income discrepancies face a Sept. 30 deadline to submit documentation. If not, their premiums will be adjusted in November.

Although those consumers still would have insurance coverage, many risk seeing their financial subsidies slashed. Some may not be eligible for any financial help. It’s also conceivable that some could actually be entitled to a bigger tax credit. Andy Slavitt, a senior official overseeing HealthCare.gov, said the government has no way of knowing at this point.

Separately, Slavitt said 115,000 people who could not prove they were citizens or legal U.S. residents will lose coverage on Sept. 30.

The administration says it has made repeated attempts to reach those consumers, but immigrant advocacy groups say the government has in some cases lost documents sent in to prove that individuals were legally entitled to benefits.

Florida and Texas top the list of citizenship- and immigration-related cancellations, with 35,100 and 19,600, respectively.

However, the administration did not report any information for immigration mega-states like California and New York, which are running their own insurance marketplaces. That omission means the final total of cancellations could be significantly higher when all states are counted.

Slavitt said people whose immigration and citizenship documents were lost can apply to have coverage reinstated.

“We recognize that we still have work to do here,” said Slavitt, a tech executive brought in by the administration to oversee the complex operations of the nation’s newest social program. “The situation that occurred this year (with data discrepancies) is not a one-time event. This is something that we all have to recognize is a built-in part of helping people get coverage.”

The health care law offers subsidized private insurance to people who do not have insurance through their jobs. New insurance exchanges, or marketplaces, are operating in every state. The federal government is taking the lead in 36 states.

Nearly 9 in 10 people — 85 percent — of the 8 million who got coverage under Obama’s law have also gotten financial aid, which is keyed to income, household size and other factors.

Without it, coverage would be unaffordable for many. The government says the average consumer is paying $82 a month on a premium of $346. That works out to an average monthly subsidy of $264.