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S. 118 (114th): Stopping Illegal Obamacare Subsidies Act

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The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress, and was published on Jan 7, 2015.

Stopping Illegal Obamacare Subsidies Act

Prohibits American Health Benefit Exchanges from providing for automatic enrollment in health plans until the Inspector General (IG) of the Department of Health and Human Services (HHS) verifies that each state exchange and the federal exchange established under the Patient Protection and Affordable Care Act (PPACA) have resolved the inconsistencies outlined in the June 14 IG report.

Directs the Secretary of HHS to make public the steps that the Centers for Medicare and Medicaid Services (CMS) and the federal exchange will take to clear any inconsistencies that arose on or before the enactment of this Act and to ensure that the systems used by the CMS to determine or assess eligibility for premium tax credits, cost-sharing reductions, Medicaid under title XIX of the Social Security Act (SSAct), and the State Children's Health Insurance Program under SSAct title XXI can resolve such inconsistencies within 30 days after enactment of this Act.

Directs the Secretary to make public the methods that the CMS use to monitor, track, and measure the progress of the federal and state exchanges in resolving inconsistencies.

Suspends for plan year 2015 the availability of premium assistance tax credits and the reduced cost-sharing program under PPACA; and allows them to resume only after the Commissioner of the Social Security Administration declares affirmatively that all inconsistencies related to invalid Social Security numbers have been resolved, and the IG determines that this is so.

Directs the Secretary to request additional information from any applicant for a qualified health plan on a state or federal exchange whose information contains inconsistencies. Requires the applicant to: (1) be withdrawn from the premium assistance credit and reduced cost-sharing programs if the additional information is not provided within 90 days, and (2) re-enroll in a qualified health plan with appropriate and accurate information during the next open enrollment period.