House subpoenas eight insurers in Obamacare investigation

Republicans in the House of Representatives subpoenaed eight major health insurance companies as part of an investigation into alleged fraud in Affordable Care Act (ACA) subsidies.

The subpoenas were directed at some of the most influential companies in the U.S. market: Blue Shield of California, Centene Corporation, CVS Health, Elevance Health, GuideWell, Health Care Service Corporation, Kaiser Permanente and Oscar Health Inc. Lawmakers noted that these companies have allegedly not turned over all previously requested information.

Request for key documents

In the letters sent to the executives, committee members explained that they are evaluating "the subsidy fraud to Obamacare and the ability of current regulatory laws to address this fraud." As part of that review, they demanded documents to analyze how subsidies are administered within the ACA marketplace.

The deadline for submitting the information is February 23. The required data includes the number of members who received subsidies but did not use any medical benefits in a given year, as well as the total amount paid by each insurer to brokers and agents operating in the ACA market.

Audit set alarm bells ringing

The committee requested this information after a congressional watchdog determined in December that premium tax credits, expanded in recent years, were vulnerable to fraud. During the audit, inspectors were able to obtain subsidized coverage for multiple fictitious applicants, which evidenced weaknesses in verification controls.

In that context, Congressman Jeff Van Drew, chairman of the Oversight Subcommittee, stated on the social network X that "when billions of taxpayer dollars go unaccounted for, people deserve answers."