00:02Only in Washington, only in Washington can you let people take more than what's legally allowed under a government program
00:13and at the same time let them keep it.
00:18Last year, I shined a light with the Treasury Inspector General that over 40% of excess federal marketplace subsidy payments
00:32totaling $10.2 billion, dating back to 2016, were not being recouped.
00:42So why not recoup?
00:45Because of the current so-called safe harbor recapture rules.
00:52When Obamacare was passed, it established so-called safe harbor recapture rules for the advanced premium tax credit, also known as a subsidy.
01:06When an individual buys a health plan off of the federal marketplace,
01:12the government subsidizes much of the cost through an advanced premium tax credit.
01:19The subsidy is based on a consumer's estimated income.
01:25At the end of the year, the consumer reconciles any differences in their subsidy amount based on their actual income compared to their previously projected income.
01:42If a consumer gets more than what's permitted based on their income, they must return the excess amount unless they fall within the so-called safe harbor, which is based on income and excess amount.
02:01As a consumer could misestimate their annual income and not be required to pay back any excess subsidy or maybe just a small portion.
02:16Until now, safe harbor rules permitted keeping up to $3,250 in excess.
02:26This policy actually rewarded fraud and wasted taxpayers' money.
02:33This is especially concerning since I've also found that insurance agents are also using targeted internet ads to fraudulently enroll consumers with false income.
02:51Congress has tightened and simplified the safe harbor rules before.
02:57Senate Republicans, through the one big beautiful bill, ended this legal theft for those over the poverty limits.
03:08This policy will save over $19 billion in the next 10 years.
03:14Senate Republicans also established pre-enrollment verification requirements with flexibilities for special enrollment periods.
03:25This will save over $40 billion.
03:30This is good news for the taxpayers, but particularly fairness in this program.
03:37I yield the floor and suggest the absence of a quorum.
Be the first to comment