House to attack ruling on ObamaCare subsidies next week

House Republicans next week are expected to call up legislation to prohibit the federal government from subsidizing health insurance coverage under ObamaCare's insurance exchanges until a process is put in place to verify the eligibility of people receiving those subsidies.

The No Subsidies Without Verification Act, H.R. 2775, is a response to an Obama administration rule issued in July that said federal officials will not verify whether people are eligible for subsidized insurance under the exchanges.

Under the 2010 law, a person is eligible for subsidies if his or her employer has not offered an affordable health plan. But the Obama administration has waived a requirement that companies report on who has been offered a plan, so there will be no way for the government to verify eligibility.

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As a result, the administration said in July that states running their own exchanges will have to "accept the applicant's attestation without further verification."

That rule led to immediate criticism from Republicans that the administration is hoping the "honor system" will work when it comes to handing out subsidies. The GOP has also argued that failing to verify eligibility will only drive up the costs of the law.

The legislation, from Rep. Diane Black (R-Tenn.), would prohibit the government from offering these subsidies until a system is put into place to verify people's eligibility.

"This regulatory rule change is not merely a minor adjustment but rather a disturbing pattern by this administration to go to any and all lengths — regardless of the law — in order to advance its political objectives," she said in July when she introduced the bill. "If this rule change was aboveboard — as the administration claims — then why did HHS make the announcement on the Friday after July 4th buried in more than 600 pages of ObamaCare regulations?"