Read on Twitter
IRS delays could cause many people to lose financial assistance for marketplace health coverage unless CMS acts soon. CMS should not terminate advance premium tax credits (APTC) until COVID-related IRS backlogs are resolved. @mandrews110 breaks it down: https://khn.org/news/obamacare-subsidy-irs-tax-form-8962-error-notices-blame-pandemic
People who received APTC in 2019 must “reconcile” it on their tax return to determine whether they got more/less assistance than allowed. If not, they’ll lose 2021 assistance. The problem? COVID-related delays mean that more than 1M tax returns are still warehoused.
What’s more, many people who try to reconcile enter an IRS paper chase and need to submit additional paper documentation related to their APTC. Much of that is likely among the 3 million additional pieces of unopened IRS mail.
What this means is that lots of people are at risk of losing APTCs through no fault of their own. Without financial help, many of those people could become uninsured.
IRS Commissioner Rettig said in Ways and Means Committee testimony that all enrollees need to do is attest in their marketplace app to having filed their tax return. True, but that’s insufficient for three key reasons.
First, http://HealthCare.gov notices to enrollees warning they might lose APTC tell people who’ve filed *to do nothing,* contrary to the IRS Commissioner’s advice. Doing nothing could mean owing the full premium, which many low-income people can’t pay. https://www.warner.senate.gov/public/index.cfm/pressreleases?ID=A5621395-97B5-477D-BDEB-0D47FE838A7F
Second, people who lose coverage may be blocked from re-enrolling for the *entire year.* While the (lengthy, intimidating) appeals process can resolve some cases, there is no special enrollment period for people who can’t afford to pay their premiums.
Third, around 40% of returning enrollees re-enroll automatically. They won’t come back into the application, and some will lose their 2021 APTC as of Jan 1.
The current process is ping-ponging people between the IRS and the marketplace, with each passing the buck, even for people who did everything right. Ending APTC for these enrollees will needlessly cause financial hardship and lower enrollment.
