Grassley Demands Accountability for Reported $20 Billion Obamacare Fraud

Grassley Demands Accountability for Reported $20 Billion Obamacare Fraud

BUTLER COUNTY, IOWA - U.S. Sen. Chuck Grassley (R-Iowa) is digging into reports taxpayers this year have footed approximately $20 billion in improper Obamacare subsidies. Congressional Democrats' decision to hike premium tax credits (PTCs) under the Affordable Care Act, which the Biden administration green-lighted in 2021, has contributed to the high cost of subsidies.

"Party-line PTC increases left Obamacare, a program already riddled with problems, wide open to new waste, fraud and abuse. Congress and the public ought to know exactly how federal agencies allowed for this exploitation to happen at all, let alone on such a significant scale. Oversight brings accountability. I'm seeking answers on agencies' procedures and controls, as well as the steps they're taking to clean up this costly mess," Grassley said of his effort.

Read Grassley's full letter to the U.S. Department of Health & Human Services and the U.S. Centers for Medicare & Medicaid Services HERE.

Background:

The Biden administration in 2021 increased PTCs for higher-income earners and reduced cost sharing through 2025. As a result, individuals whose income is within 100 and 150 percent of the federal poverty level (FPL) are eligible for fully subsidized health insurance plans. This policy change has compromised program integrity, particularly in states that have not expanded Medicaid.

In his letters, Grassley cites data from nine states showing individuals are misrepresenting their income, with "the number of sign-ups reporting income between 100 percent and 150 percent FPL [exceeding] the number of potential enrollees." In Florida, four times the number of legitimately eligible residents have claimed qualifying income. In total, roughly five million people have falsely reported their income to secure fully subsidized health insurance.

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