By Sriparna Roy
Feb 10 (Reuters) – House Judiciary Committee Republicans have subpoenaed eight Affordable Care Act health insurers for documents as part of an investigation of potential fraud surrounding Obamacare subsidies.
The subpoenas to Elevance Health, CVS Health, Centene, GuideWell, Oscar Health, Kaiser Permanente, Health Care Service Corp (HCSC) and Blue Shield of California by Republican House Judiciary Chair Jim Jordan demanded information on measures taken by each company to protect from fraud.
In the letters sent to the companies on Monday, the committee cited a recent report by the Government Accountability Office that found billions of dollars in unreconciled Obamacare subsidies per year.
The subsidies, which are advanced premium tax credits paid directly from the federal government to insurance companies, cover an enrollee’s premium above a percentage of their income. These subsidies, which were expanded during the pandemic, have expired and their future remains uncertain.
The House passed a three-year extension, but it still needs to pass the Senate, where negotiations are ongoing.
CVS told Reuters it received the letter and is cooperating, while Centene said it was providing information to the House Judiciary Committee with the goal of fighting fraud and increasing access. A GuideWell spokesperson said the company has cooperated with all inquiries.
Blue Shield of California said the company has provided multiple responses, including data showing no evidence of alleged “phantom enrollees”. HCSC said it works collaboratively with federal and state officials to support program integrity.
The committee had initially sent letters to the companies in December, but were not satisfied with the responses.
The insurers must send the information to the House Judiciary Committee by February 23.
The news was reported by Axios earlier in the day.
(Reporting by Kanjyik Ghosh in Barcelona and Sriparna Roy in Bengaluru; Editing by Andrew Heavens and Maju Samuel)
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