The Centers for Medicare & Medicaid Services sent letters to consumers informing them of their ineligibility for Affordable Care Act subsidies if their Medicaid plan meets minimum health coverage requirements.
Over the past few days consumers have received letters stating in large black font, “people in your household may lose financial help for their marketplace coverage,” according to the New York Times.
CMS gives people 30 days to unenroll, after which they will stop receiving subsidies under the ACA’s advanced payment of premium tax credit or cost-sharing reduction programs. Consumers are advised in the letter to end health plans obtained via marketplaces by the date on the notice, according to a CMS fact sheet (.pdf).
A federal investigation earlier this year discovered 431,000 ACA applicants with unresolved verification issues after the 2014 enrollment closed. The effort to reduce fraudulent double payment stems from CMS’ periodic data matching program, which identifies people registered with both state Medicaid or CHIP agencies and exchange marketplaces. Those who are a “match” received an initial warning notice with instructions to change their ACA application statuses.
Critics maintain CMS has taken a “passive approach to fraud,” and that this issue leads to billions in federal spending.
- read CMS’ fact sheet (.pdf)