Congressman Black Introduces Legislation to Protect Taxpayers from Obamacare Fraud & Abuse

Jul 24, 2013 Issues: Health

Washington, DC – Congressman Diane Black (R-TN-06) introduced the No Subsidies Without Verification Act, H.R. 2775, which would prohibit any federal subsidies for Obamacare’s health insurance exchanges from being provided until there is a system in place that verifies eligibility as outlined by current law (Section 1411 of the Patient Protection and Affordable Care Act). On July 5th, the Department of Health and Human Services (HHS) released more than 600 pages of new Obama care regulations, in which it buried a regulatory rule change announcing that the government will no longer verify whether or not applicants for Obamacare’s insurance exchange subsidies are actually qualified for the aid. Instead, until at least 2015, the government will accept the applicant’s attestation without further verification. H.R. 2775 seeks to stop the fraud and abuse that will inevitably ensue if the Administration fails to verify eligibility for Obamacare subsidies.

“In a desperate and illegal attempt to try to salvage the President’s disastrous healthcare law, the Obama Administration has announced that it will delay verification of eligibility for Obamacare insurance subsidies. That is why I introduced H.R. 2775, the No Subsidies Without Verification Act, to stop the Obama Administration’s attempt to defraud taxpayers by demanding that accurate, real-time verification systems be put in place to prevent fraudulent Obamacare subsidy claims. This regulatory rule change is not merely a minor adjustment but rather a disturbing pattern by this administration to go to any and all lengths – regardless of the law – in order to advance its political objectives. If this rule change was aboveboard – as the administration claims -  then why did HHS make the announcement on the Friday after July 4th buried in more than 600 pages of Obamacare regulations? The White House spin will be no match for the public outrage that will ensue when the true fiscal implications of this decision come to light.

“By not verifying eligibility for Obamacare, the administration will ensure that the government hands out billions of dollars in fraudulent payments – racking up more debt for current and future generations. It is simply indefensible for the administration to misuse its power and authority under the executive branch to encourage fraud and abuse of taxpayer dollars in a pathetic attempt to boost enrollment in the Obamacare health insurance exchanges. Until the administration figures out how to determine eligibility for this new entitlement program as is already required by law, it is unjustifiable for the administration to proceed with giving out Obamacare subsidies. Congress must hold the administration accountable by fighting back against this blatant attempt to facilitate billions of dollars in fraud at the taxpayers’ expense,” said Congressman Black.

ICYMI: Black discusses efforts to stop Obamacare fraud and abuse with Greta Van Susteran “On The Record” (7/23/13)


Congressman Diane Black represents Tennessee’s 6th Congressional District. She has been a registered nurse for more than 40 years and serves on the House Ways and Means and Budget Committees.