President Barack Obama's administration has taken action against duplicate healthcare coverage by which Medicaid enrollees simultaneously receive federal subsidies to help pay for private health insurance under the Affordable Care Act, The New York Times reported.
Consumers around the country were recently notified of this move, which affects tens of thousands of people, via unsigned letters from the federal insurance exchange.
The letters warn: "People in your household may lose financial help for their marketplace coverage," according to the report. The letters also tell consumers to "immediately end marketplace coverage with premium tax credits for each person" in the household who is also enrolled in Medicaid or in the Children's Health Insurance Program.
Federal officials said they will unilaterally cut off financial assistance for insurance premiums, deductibles and other out-of-pocket medical costs if consumers fail to comply with the new requirement, The New York Times reported.
According to the report, HHS Secretary Sylvia Mathews Burwell is supervising the action, which comes more than nine months after the Government Accountability Office said they found the potential for duplicate coverage, with double payment.
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