Bad news for Obamacare recipients: Because of this fraud, you could get an unpleasant surprise on your taxes

Tax season is well underway and people across the United States have just a few days left to file their 2024 tax returns before the April 15 deadline. Many will be hoping for a refund on their taxes but for some, the picture will be very different.

CBS News reports that scammers may have left some recipients of health insurance from the Affordable Care Act (also known as Obamacare) may have a nasty surprise when they file. From late 2023 onwards the Centers for Medicare & Medicaid Services (CMS) began warning of rogue agents and call centres pushing unauthorised enrolments or changes in ACA plans.

In some cases, people were switched to a plan that meant that the exceeded their annual limit for premium tax credits. Those unlucky ACA beneficiaries may be required to pay back all or part of their support.

How do I know if I’m a victim of the Obamacare fraud?

For many people, the first that they knew of the problem was when they receive a 1095-A form in the mail. State and federal marketplaces send out these documents to ACA enrollees to list the tax credit payments made on their behalf. The 1095-A form is used to complete their tax return.

Some people have discovered that they were unwittingly enrolled in a ACA plan that they were not entitled to claim. If the financial support fully offsets the monthly payments the victims may never even receive a bill revealing the change, leaving them to continue using the policy without realising. For some, the 1095-A form is the first clue that they have switched coverage.

If your 1095-A form leads you to believe that you were fraudulently enrolled in a healthcare policy as part of the Affordable Care Act, you should immediately call your federal or state ACA marketplace. From there their operatives will be able to guide you through the process to reinstate your previous status and avoid potentially avoid repaying the credits used in your name.

The situation is complicated by a series of cuts from the Trump administration to the Center for Consumer Information and Insurance Oversight. Jeffrey Grant, who oversaw ACA issues for the CMS before leaving the role in February, has warned: “They laid off two divisions on the Affordable Care Act side... It will take longer to get problems taken care of."

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