Hatch: ObamaCare tax credit is ‘fraudster's dream’

Sen. Orrin Hatch (R-Utah) said Tuesday that ObamaCare subsidies are a “fraudster's dream come true.”

Hatch’s comments came after the Treasury Inspector General for Tax Administration (TIGTA) released a report showing that new tax credits that the IRS will handle under ObamaCare are susceptible to fraud.

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“The ObamaCare premium subsidies are a fraudster's dream come true,” Hatch said.  “As TIGTA found today, the very nature of these credits — pay first, verify a person’s income later — will lead to potentially hundreds of billions of dollars of improper payments and could put millions of American’s personal information at risk.”

In January, some low- and middle-income taxpayers who purchase health insurance through exchanges are eligible for a refundable tax credit to help cover the costs.

Hatch, the ranking member on the Senate Finance Committee, said he thinks the IRS isn’t capable of verifying if someone qualifies for ObamaCare tax subsidies despite it being based on income level.

“While the IRS needs to do more to ensure more safeguards are put in place, the fact is that the problems with these tax credits are deeply rooted in the law itself,” Hatch said. “I fear the IRS will never be fully capable of ensuring that these refundable tax credits got to those who are truly eligible.”

The TIGTA recommended that the IRS develop a plan to correct the failed privacy security tests and finish implementing its anti-fraud plan.

The administration has had to defend the Affordable Care Act, also known as ObamaCare, as parts have rolled out.