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Treasury Audit: Obamacare Subsidies Vulnerable to Fraud


While the Obama administration looks to put’s woes behind it, another one of the health-care law’s key aspects could pose the latest problem for its supporters. A report by the Treasury Department’s inspector general found that the law’s health-care subsidies may be susceptible to fraud.

According to the report, problems will likely arise as recipients claim the subsidies on their 2014 tax returns. To address this issue, the IRS must improve its current system and controls for preventing fraud.

“The IRS’s existing fraud detection system may not be capable of identifying ACA refund fraud or schemes prior to the issuance of tax return refunds,” the report said, according to Bloomberg.

The subsidies are intended to aid low- and medium-income applicants in purchasing insurance plans on the marketplace exchanges.


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