Healthcare reform provides premium tax credits to make health insurance affordable to individuals with modest incomes between 100% and 400% of the federal poverty level. These credits are available to those who are not eligible for other qualifying coverage, such as Medicare, or "affordable" employer-sponsored health insurance plans that provide "minimum value." They are refundable tax credits, applicable for tax years ending after Dec. 31, 2013, available to individuals who purchase coverage through "Affordable Insurance Exchanges," also known as Marketplaces.[1]

In July 2013, the federal Department of Health and Human Services issued a final rule for the exchange's income verification process, which the Washington Post reported would "significantly scale back" the law's verification requirement for those receiving federally subsidized coverage.[2] Note however, that the Exchange subsidies are not paid to individuals but, rather, to insurers.

These July 2013 regulations[3], which were delayed for one year from 2014 until 2015, include two reporting requirements for certain large employers and health insurance coverage providers. Under the final July 2013 HHS regulation, applicants' income is to be verified against their IRS and Social Security records. When that cannot be achieved, income will be checked against employer records submitted to Equifax. If the IRS, the Social Security Administration, and Equifax cannot provide data to substantiate the income information a consumer has supplied, the consumer will have to provide an explanation or additional documentation of income.[4]

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