July 25, 2014

ADD? Megan McArdle: Add Fraud to the List of Obamacare Disasters.

It sounds like the systems that are supposed to check identity, immigration status and income simply aren’t working at all; the system just assumes that you are who you say you are.

This isn’t the only major part of the system that’s still missing; as the Official Blog Spouse reported last week, the system that pays insurers still seems to be MIA. Presumably, the emergency team called in to fix the exchanges prioritized the bits that the public could see, leaving everything else for later. Compared to what was described by the Barack Obama administration (and the law), the system still seems to be half-built.

How much does this matter? Obviously, all the GAO can say is that this is possible; we don’t know whether, or how often, such fraud has actually occurred. Even if you get an insurance card fraudulently, how easy would it be to use without ever being asked for picture ID? How many people would go to the trouble of faking or altering documents? And might the subsidies be taken away after review? We simply don’t know.

Still, it’s obviously troubling that people could so easily fraudulently obtain government subsidies, because the incentive to do so is obvious: free money from the government. It’s also troubling because it makes one wonder what other major parts of the system simply aren’t working.

Here’s a hint: All of them, except for those with political angles.