Another unknown cost to Obamacare
Posted: Thu Feb 08, 2018 1:36 pm
Based on 2015 data, the government paid $24B in subsidies to low income families for their insurance coverage. Of that amount $5.8B, almost 25%, was overpaid, mostly due to people earning more income during the year than they anticipated at the beginning of the year. The government was able to recover $2.3B thru the tax code when people filed their returns in April 2016. However, $3.5B is unrecoverable due to a provision in the code.
When the Obamacare bill was written in 2010 the democrats were afraid that a big tax bill (having to refund some of the subsidy) would dissuade people from signing up for Obamacare in the first place, so they set limits on how much the government could claw back.
Apparently congress has tweaked the cap, but the amount of overpayments is anticipated to by 5x 2015 for 2017, the amount that is unrecoverable is likely to be similar.
IMO this cap needs to be removed.
http://www.americanthinker.com/blog/201 ... er_it.html
When the Obamacare bill was written in 2010 the democrats were afraid that a big tax bill (having to refund some of the subsidy) would dissuade people from signing up for Obamacare in the first place, so they set limits on how much the government could claw back.
Apparently congress has tweaked the cap, but the amount of overpayments is anticipated to by 5x 2015 for 2017, the amount that is unrecoverable is likely to be similar.
IMO this cap needs to be removed.
http://www.americanthinker.com/blog/201 ... er_it.html