Advance premium tax credits are awarded to those with low to moderate income to help rein in the cost of purchasing health care insurance on the exchanges.
The Centers for Medicare and Medicaid Services is responsible for overseeing the Obamacare exchanges which should ensure that an individual who applies for the tax credit has his identity verified and that the individual is eligible to receive the payment.
Individuals are asked a number of questions regarding their personal information such as their address, telephone number, date of birth, and out-of-wallet questions to determine their identity. After this process, individuals can submit an application to see if they are eligible to receive benefits.
The audit found that the exchanges did not successfully verify the identity of 35,276 individuals, and these individuals received $112 million in advance premium tax credits. The report notes that the majority of these applications—99 percent—had no verification process performed on them, and 251 failed identity verification.