Due to website glitches, consumers eligible for subsidies on the public exchange used the “honor system” to estimate their income during open enrollment in 2014. Consumers that inaccurately or fraudulently estimated their income will repay the federal government with a reduction in their 2014 federal tax refund.
The federal government recently announced that different levels of repayment will be required for different consumers. Repayments will be capped for low income, but full repayment will be required for those found with incomes above the subsidy threshold. Uniquely, immigrants at or below the income level required to receive a subsidy have until September 5 to submit proof of residency status. Those that do not meet the deadline will repay at least a portion of the subsidy received and lose their health insurance coverage. This strict deadline angers immigrant advocacy groups that state website glitches and lack of education will prevent many from meeting the September 5th deadline.