Chuck Grassley: “Only in Washington--only in Washington--can you let people take more than what is legally allowed under a government…”

“Only in Washington--only in Washington--can you let people take more than what is legally allowed under a government program and, at the same time, let them keep it. Last year, I shined a light with the Treasury inspector general that over 40 percent of excess marketplace subsidy payments totaling $10 and two-tenths billion, dating back to 2016, were not being recouped. So why not recouped? Because of the current so-called safe harbor recapture rules. When ObamaCare was passed, it established so-called safe harbor recapture rules for the advanced premium tax credit, also known as a subsidy. When an individual buys a health plan off of the Federal marketplace, the government subsidizes much of the cost through an advanced premium tax credit. The subsidy is based on a consumer's estimated income. At the end of the year, the consumer reconciles any differences in their subsidy amount based on their actual income compared to their previously projected income. If a consumer gets more than what is permitted based on their income, they must return the excess amount unless they fall within the so-called safe harbor, which is based on income and excess amount, as a consumer could misestimate their annual income and not be required to pay back any excess subsidy or maybe just a small portion. Until now, safe harbor rules permitted keeping up to $3,250 in excess. This policy actually rewarded fraud and wasted taxpayers' money.”