House Judiciary Committee Republicans have launched an investigation into eight major health insurance companies over alleged waste, fraud, and abuse tied to Obamacare subsidies.
"Brokers have targeted individuals with deceptive advertisements and pressured enrollees to lie about their incomes to obtain Obamacare subsidies," the House Judiciary Republicans wrote in a release, outlining the probe and requests for documents.
"Evidence suggests that many individuals do not even know they are signing up for health insurance or agreeing to switch plans."
Judiciary Chair Jim Jordan, R-Ohio, sent letters dated Monday demanding documents and information from Blue Shield of California, Centene Corporation, CVS Health, Elevance Health, GuideWell, Health Care Service Corporation, Kaiser Permanente, and Oscar Health, Inc.
The inquiry focuses on federal subsidies under the Affordable Care Act, which Republicans say are "notoriously rife" with fraud. Lawmakers cited a recent Government Accountability Office report identifying $21 billion in unreconciled subsidy payments, including cases involving duplicate Social Security numbers and subsidies issued to deceased individuals.
The probe follows a federal court decision earlier this year that blocked a Trump administration regulation aimed at curbing Obamacare subsidy fraud, with the court ruling the policy violated the Administrative Procedure Act.
The letters sent to the companies were co-signed by Subcommittee on Oversight Chair Jeff Van Drew, R-N.J., and Subcommittee on the Administrative State, Regulatory Reform, and Antitrust Chair Scott Fitzgerald, R-Wis.
The committee leaders say the requested records will help determine the extent of insurer involvement and whether stronger oversight or legislative action is needed.
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