More than 5, 00,000 people who have not yet submitted proper documents to the US Healthcare agency may lose health insurance coverage or tax benefits that help pay for it. As US voters head to polls in the month of November, these issues are the most recent glitches related to health insurance sign-ups that may bring Obamacare back into the limelight.
Meanwhile, the officials from the Centers for Medicare and Medicaid Services have started sending legal notices to residents who have provided wrong or incorrect information on file about their level of income. In addition, the CMS has notified consumers who have not submitted details about their citizenship or immigration status within the September 5 deadline that they will lose their insurance coverage towards the end of this month.
The current deadline is applicable to people residing in those 36 US states and who have registered for health benefit plans via the federal Healthcare.gov site that suffered several technical glitches. This deadline is not applicable for those who have enrolled through state’s exchanges or through private brokers as there is no information about incompatible data reported till now. It is found that only 9% of those people who have submitted details under the marketplaces will fall short of coverage by these closing dates. Below mentioned are some of the key points about the income data mismatch
- More than 360,000 people who have filed information about their income details do not match with the official records of the US Healthcare agency.
- It is essential for such people to present additional supporting documents by the end of September.
- Those citizens who fail to adhere to the specified deadline will subsequently lose their tax subsidies that help them pay for health plans. It is reported that the subsidies provided to about 8 out of 10 people that enrolled through federal insurance market places were initiated to help those families whose income is not low enough to qualify for Medicaid, but is still less than $94,200 a year. In addition, those who have qualified for tax subsidies are paying less than $100 per month for premiums.
As per the latest reports from the US healthcare agency, those people who do not submit the relevant additional documents for health insurance verification within the specified deadline will face penalties. An adjustment to the premiums will be done to replicate the income on records. Moreover, they will also face the liability or reconciliation process while filing for the taxes. On the other hand, those citizens who have submitted higher income information than what they were actually earning would benefit from amount recoup.