On Wednesday, July 23, the House Ways and Means Committee’s Subcommittee on Oversight held a hearing about the integrity of the health reform law’s premium tax credit. The hearing’s sole witness was Seto Bagdoyan, the acting director of audit services, forensic audits and investigative service for the federal Government Accountability Office (GAO). Bagdoyan reported for the first time on the preliminary results of an ongoing federal investigation of the controls being used by the federal health insurance exchange when deeming individuals eligible for federal premium tax credit subsidies. The GAO’s investigators found that so far in 11 of 12 attempts made in several different states, undercover agents were able to enroll in subsidized insurance coverage using entirely fake applications. Bagdoyan stressed that the investigation results were preliminary and an ongoing investigation’s initial results shouldn’t be taken out of context. However, he also noted that the findings to-date raise “a number of questions that are fundamental about the effectiveness of controls.”
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