White House “Honor System” Leaves ObamaCare “Wide Open to Fraud”
The Obama administration wants you to know it is getting tough on waste, fraud, and abuse …. in its government cell phone program. But ObamaCare’s taxpayer-funded subsidies? Not so much.
You see, the Obama administration is “urging companies to thoroughly check a person's eligibility” in order to limit “waste and abuse” in its government cell phone program, says The Hill. Which is great, and all. But for those signing up for taxpayer-funded ObamaCare subsidies? Reuters says the president will “depend on consumers observing the honor system.”
The White House paired this “subsidize first, ask questions later” approach with Friday’s announcement that it’s delaying the health care law’s mandates for businesses, but not individuals and families.
“HHS now says it will no longer attempt to verify individual eligibility for insurance subsidies and instead will rely on self-reporting,” according to the Wall Street Journal. “[T]he result starting in October may be millions of people getting subsidies who don't legally qualify” – and “[t]his would mean huge increases in ObamaCare spending. … as much as $250 billion in improper payments in its first decade.”
Reuters says relying on the honor system could lead to “a ‘boatload’ of illegitimate tax credits.”
Yuval Levin agrees, saying the Obama administration is “opening the door wide open to fraud” that will “needless to say, increase the cost of the exchange subsidies.”
So for those keeping track: not only is the president’s health care law driving up costs, threatening workers’ hours and wages, and making it harder for small businesses to hire. “The president’s decision to use the ‘honor system’ to hand out subsidies” also “exposes taxpayers to massive fraud and abuse,” said Speaker Boehner. The American people deserve better than this.