GAO Sting Finds It Easy to Fake It & Get Obamacare Subsidized Premiums

Today in Washington, D.C. - July 23, 2014
The House reconvened today at 10 AM. The House will consider today:
H.R. 3136 — "To establish a demonstration program for competency-based education."
H.R. 4984 - to amend the loan counseling requirements under Higher Education Act of 1965, and for other purposes."
H.R. 4983 — "To simplify and streamline the information regarding institutions of higher education made publicly available by the Secretary of Education, and for other purposes."
H.R. 5134 — "To extend the National Advisory Committee on Institutional Quality and Integrity and the Advisory Committee on Student Financial Assistance for one year."

Yesterday the House passed:
H.R. 1022 (260-143) — "To develop an energy critical elements program, to amend the National Materials and Minerals Policy, Research and Development Act of 1980, and for other purposes."
H.R. 2430 (Voice Vote) — "To adjust the boundaries of Paterson Great Falls National Historical Park to include Hinchliffe Stadium, and for other purposes."
H.R. 3716 (Voice Vote) — "To ratify a water settlement agreement affecting the Pyramid Lake Paiute Tribe, and for other purposes."
H.R. 3802 (Voice Vote) — "To extend the legislative authority of the Adams Memorial Foundation to establish a commemorative work in honor of former President John Adams and his legacy, and for other purposes."
H.R. 4411(404-0) — "To prevent Hezbollah and associated entities from gaining access to international financial and other institutions, and for other purposes."
H.R. 4450 (347-57) — "To extend the Travel Promotion Act of 2009, and for other purposes."
H.R. 4508 (Voice Vote) — "To amend the East Bench Irrigation District Water Contract Extension Act to permit the Secretary of the Interior to extend the contract for certain water services."
H.R. 4562 (Voice Vote) — "To authorize early repayment of obligations to the Bureau of Reclamation within the Northport Irrigation District in the State of Nebraska."
H.R. 4572 (Voice Vote) — "To amend the Communications Act of 1934 to extend expiring provisions relating to the retransmission of signals of television broadcast stations, and for other purposes."
H.R. 4802 (Voice Vote) — "To improve intergovernmental planning for and communication during security incidents at domestic airports, and for other purposes."
H.R. 4803 (Voice Vote) — "To require the Transportation Security Administration to conform to existing Federal law and regulations regarding criminal investigator positions, and for other purposes."
H.R. 4812 (Voice Vote) — "To amend title 49, United States Code, to require the Administrator of the Transportation Security Administration to establish a process for providing expedited and dignified passenger screening services for veterans traveling to visit war memorials built and dedicated to honor their service, and for other purposes."
H.R. 5035 (Voice Vote) — "To reauthorize the National Institute of Standards and Technology, and for other purposes."
H.R. 5120 (Voice Vote) — "To improve management of the National Laboratories, enhance technology commercialization, facilitate public-private partnerships, and for other purposes."

The Senate reconvened at 9:30 AM today and resumed consideration of the motion to proceed to S. 2569, a bill that would change the tax code concerning tax breaks for moving expenses for certain corporations.

At 11 AM, the Senate voted 93-7 to invoke cloture on the motion to proceed to (i.e. agreed to take up and consider) S. 2569. The Senate then confirmed Andrew Shapiro to be Ambassador to the Czech Republic and two other nominees by voice votes.

Yesterday, the Senate voted 100-0 to confirm 3 district judge nominees for California, Florida, and Louisiana.

The AP reports, “Undercover investigators using fake identities were able to secure taxpayer-subsidized health insurance under President Barack Obama's health care law, congressional investigators said Wednesday. . . . The nonpartisan Government Accountability Office told a House committee that its investigators were able to get subsidized health care under fake names in 11 out of 18 attempts - even after HealthCare.gov's much maligned online system flagged some applications as problematic. The GAO is still paying premiums for the policies, even as the Obama administration attempts to verify phony documentation. Those follow-up verification checks also appeared to need tightening; the GAO said parts of the fake documentation it submitted for two applications actually got through the process.”

The Washington Post adds, “In undercover tests of the new federal health insurance marketplace, government investigators have been able to procure health plans and federal subsidies for fake applicants with fictitious documents, according to findings that will be disclosed to lawmakers Wednesday. The results of the inquiry by the Government Accountability Office are evidence of still-imperfect work by specialists intended to assist new insurance customers as well as government contractors hired to verify that coverage and subsidies are legitimate. The GAO also pointed to flaws that linger in the marketplace’s Web site, HealthCare.gov. According to testimony to be delivered before a House Ways and Means subcommittee, undercover GAO investigators tried to obtain health plans for a dozen fictitious applicants online or by phone, using invalid or missing Social Security numbers or inaccurate citizenship information. All but one of the fake applicants ended up getting subsidized coverage — and have kept it. In one instance, an application was denied but then approved on a second try. In six other attempts to sign up fake applicants via in-person assisters, just one assister accurately told an investigator that the applicant’s income was too high for a subsidy. . . . The GAO investigation was requested before the marketplace opened in the fall, by House Ways and Means Chairman Dave Camp (R-Mich.); Rep. Charles W. Boustany Jr. (R-La.), chairman of the Ways and Means oversight subcommittee; and Sens. Tom Coburn (R-Okla.) and Orrin G. Hatch (R-Utah).”

NBC News gives some more details of the investigation. “The GAO launched the sting to check to see how well the Obamacare process checks for counterfeit applications. The results were messy, GAO’s Seto Bagdoyan says in testimony prepared for a hearing Wednesday of the House Ways and Means oversight subcommittee. . . . The GAO operatives made up 18 applications -– 12 applied online or by telephone, and six started out looking for in-person help. All were completely false, with fake incomes and counterfeit documentation. Only one of the group of 12 was correctly told he or she could not apply. . . . The other 11 got through and received federal subsidies to help pay for their health insurance. . . . ‘We are seeing a trend with Obamacare information systems: under every rock, there is incompetence, waste and the potential for fraud,’ committee Chairman Dave Camp, a Michigan Republican, told NBC News. ‘Last month, we found that the administration was unable to verify income or eligibility for insurance subsidies. Now, we learn that in many cases, the exchange is unable to screen out fake identities or documents.’”

Of course, this investigation by the GAO highlights yet another broken promise from the Obama administration about Obamacare. In January, then Health and Human Services Secretary Kathleen Sebelius wrote, “I certify that the American Health Benefit Exchanges (Marketplaces) verify that applicants for advance payments of the premium tax credit and cost-sharing reductions are eligible for such payments and reductions . . . .”

As Senate Republican Leader Mitch McConnell said earlier this month, “We knew the promises wouldn’t hold up. Many of us said so. One even earned the dubious distinction of being declared the ‘Lie of Year.’ And that’s why it’s so hard to trust much of what the Obama Administration claims about Obamacare these days. Like back in December, when Administration officials issued another promise — that they’d make sure that any taxpayer-funded Obamacare subsidies would only go to enrollees who’d actually qualified for them under the law. . . . [I]t turns out we were right to worry. The Inspector General concluded that the Administration was often ineffective at verifying such basic details about Obamacare enrollees as their citizenship status, their income, their Social Security number, and whether or not they were even eligible to purchase Obamacare in the first place.” And today’s news about the GAO’s investigation is just more evidence of this.

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