Shortly after announcing the delay of the employer mandate until 2015, the Obama administration quietly announced this past Friday that consumers will be on the honor system for subsidies under PPACA, at least for a while.
In a rule published on July 5, 2013, (a 606-page rule, no less) the administration said they are significantly scaling back the law’s requirements for exchanges to verify consumers’ income and health insurance status until 2015 when stronger systems are established.
In the interim, the government is relying on the “honor system” and consumers’ self-reported information.
Remember that in order to obtain a subsidy on the exchange, the system required a verification of income and whether or not the individual had access to an affordable, employer-sponsored plan. An individual may be eligible for a subsidy if their household income is between 133-400% of the Federal Poverty Level, and/or their employer does not offer affordable health coverage.
They will be using “random checks,” however, to verify whether new applicants receive employer-sponsored insurance benefits, and to verify income status.
New regulations also state that the 17 state-based exchanges would have until 2015 to do random checks, citing “legislative and operational barriers.” The same rule also states that the government is giving the states until 2015 to roll out electronic notices because states are “at different places in the development of their eligibility and enrollment systems.”
Do you think any other major aspects of Health Care Reform will be delayed?