The Obama administration announced Monday it will cut off tax subsidies to about 360,000 people if they do not offer proof of their income in the next two weeks.
Officials will send final notices this week to individuals who signed up for ObamaCare with income levels that didn’t match government records. The announcement marks the administration’s first move to tackle the politically charged issue of income verification, which has remained a key GOP argument against the healthcare reform law.
Those who don’t confirm their income levels could lose their tax credit and face higher premiums and higher deductibles.
Nearly 90 percent of the 8 million people who signed up for ObamaCare have received government subsidies. The average consumer pays $82 per month for a $346 plan, receiving an average subsidy of $264.
The administration had already warned that it would end coverage for the 966,000 individuals whose immigration status could not be confirmed by the government.
About 115,000 people will lose coverage this month if they do not submit their paperwork, Andy Slavitt, principal deputy administrator at the Centers for Medicare and Medicaid Services, told reporters Monday.
A total of 1.2 million people have had income inconsistencies since the launch of ObamaCare last year. About 800,000 people have since submitted verification.
The federal government is still missing paperwork for nearly a half-million people who signed up for insurance over the last year. Slavitt stressed that individuals may be able to regain their coverage during a special enrollment period if they can prove their citizenship status or income level.