Other states clearly shared this worry about how they were supposed to confirm eligibility for subsidies. But on Friday, the Obama administration answered their question with what is becoming the familiar refrain of Obamacare implementation: “never mind.” Buried in a massive
600-page rule released without fanfare the day after July 4, the administration announced that it would effectively delay the requirement to verify eligibility in the state exchanges.
In 2014, applicants can more or less be deemed eligible for subsidies in the state-run exchanges if they say they are eligible. If it has no external sources of information regarding what insurance employers offer, the rule states, “the exchange may accept the applicant’s attestation regarding enrollment in an eligible employer-sponsored plan and eligibility for qualifying coverage in an employer-sponsored plan for the benefit year for which coverage is requested without further verification.” In fact, the exchanges are not only released from the obligation to verify whether applicants are eligible for employer coverage, they are also released from the obligation to confirm applicants’ statements regarding their household incomes before providing them with what is supposed to be an income-based benefit.