Judiciary Republicans Probe Insurance Companies on Obamacare Fraud

WASHINGTON, D.C. – Today, House Judiciary Committee Chairman Jim Jordan (R-OH), Subcommittee on the Administrative State, Regulatory Reform, and Antitrust Chairman Scott Fitzgerald (R-WI), and Subcommittee on Oversight Chairman Jeff Van Drew (R-NJ) sent letters to Blue Shield of California, Centene Corporation, CVS Health, Elevance Health, GuideWell, Health Care Service Corporation, Kaiser Permanente, and Oscar Health, Inc. demanding documents and information as the Committee conducts oversight of Obamacare subsidies that are notoriously rife with waste, fraud, and abuse.

Earlier this year, a federal judge blocked a regulation issued by the Trump Administration to fight Obamacare subsidy fraud, claiming it violated the Administrative Procedure Act. A recent report from the U.S. Government Accountability Office found that fraudsters used tens of thousands of Social Security Numbers to obtain Obamacare subsidies fraudulently. Some of the fraud comes from brokers, who are paid by insurance companies for each enrollment and are, therefore, incentivized to enroll as many people as possible—whether eligible or not. Brokers have targeted individuals with deceptive advertisements and pressured enrollees to lie about their incomes to obtain Obamacare subsidies. Evidence suggests that many individuals do not even know they are signing up for health insurance or agreeing to switch plans.

Read the letter to Blue Shield of California here. 

Read the letter to Centene Corporation here. 

Read the letter to CVS Health here. 

Read the letter to Elevance Health here. 

Read the letter to GuideWell here. 

Read the letter to Health Care Service Corporation here. 

Read the letter to Kaiser Permanente here. 

Read the letter to Oscar Health, Inc. here. 

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