Fictitious HealthCare.gov applicants were able to re-enroll this year and maintain subsidized coverage under the Affordable Care Act, according to a report from the U.S. Government Accountability Office.
Here are five findings from the report.
1. The marketplace last year approved subsidized coverage for 11 of the 12 fictitious applications submitted during undercover tests performed by the GAO to determine the threshold for fraud on the federal health exchange. The fake applicants all maintained coverage through 2014 and were re-enrolled this year, according to The Wall Street Journal.
2. The GAO applicants obtained a total of about $30,000 in annual advance premium tax credits, plus eligibility for lower costs due at the time of service.
3. For seven of the 11 successful fictitious applicants, the GAO intentionally submitted incomplete verification documentation to the exchange, but still didn't cancel subsidized coverage for these applicants, according to the GAO.
4. The GAO also found errors in information reported by the exchange for tax filing purposes for three of its 11 fictitious enrollees, such as incorrect coverage periods and subsidy amounts.
5. The GAO found CMS isn't required to detect fraud on HealthCare.gov and that CMS officials acknowledged "limited ability" to respond to fraud attempts, according to The Wall Street Journal. CMS told the GAO that there haven't been signs of a significant level of fraud, and that contractors were directed not to terminate policies or subsidies if an applicant submitted any documentation, the report notes.
According to The Wall Street Journal, the Senate Finance Committee will hold a hearing Thursday to discuss the GAO's findings.