Friday, September 13, 2013

Hope 'n' Change: Playing by the Same Rules



GOVERNMENT AND POLITICS 


Hope 'n' Change: Playing by the Same Rules




On Thursday, the House passed the "No Subsidies Without Verification Act," 235-191, which would block ObamaCare insurance subsidy payouts until the Department of Health and Human Services implements a system to verify eligibility. Republicans aim to close a loophole that HHS created in July that allows people to apply for insurance subsidies without proving their income or whether their employer already provides federally approved health benefits.

HHS insists Republicans are overstating the opportunity for fraud and abuse because fear of future HHS and IRS audits will keep people honest. Yet this audit power hasn't prevented people from, for example, playing fast and loose with the Earned Income Tax Credit. The Treasury Inspector General estimates that a quarter of those credits go to ineligible recipients, and equivalent fraud in ObamaCare would mean $250 billion in wrongful income redistribution over a decade. Predictably, the Democrat-controlled Senate won't consider the House measure, though Sen. Tom Coburn (R-OK) introduced it, and the White House issued a veto threat. Team Obama needs the bodies to make the program work, and they don't want stricter rules blocking folks from getting their "fair share."

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