[Congressional Record Volume 171, Number 131 (Wednesday, July 30, 2025)]
[Senate]
[Pages S4857-S4858]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
Healthcare
Mr. GRASSLEY. Only in Washington--only in Washington--can you let
people take more than what is legally allowed under a government
program and, at the same time, let them keep it. Last year, I shined a
light with the Treasury inspector general that over 40 percent of
excess marketplace subsidy payments totaling $10 and two-tenths
billion, dating back to 2016, were not being recouped.
So why not recouped? Because of the current so-called safe harbor
recapture rules. When ObamaCare was passed, it established so-called
safe harbor recapture rules for the advanced premium tax credit, also
known as a subsidy.
When an individual buys a health plan off of the Federal marketplace,
the government subsidizes much of the cost through an advanced premium
tax credit. The subsidy is based on a consumer's estimated income. At
the end of the year, the consumer reconciles any differences in their
subsidy amount based on their actual income compared to their
previously projected income.
If a consumer gets more than what is permitted based on their income,
they must return the excess amount unless they fall within the so-
called safe harbor, which is based on income and excess amount, as a
consumer could misestimate their annual income and not be required to
pay back any excess subsidy or maybe just a small portion.
Until now, safe harbor rules permitted keeping up to $3,250 in
excess. This policy actually rewarded fraud and wasted taxpayers'
money. This is especially concerning since I have also found that
insurance agents are also using targeted internet ads to fraudulently
enroll consumers with false income.
Congress has tightened and simplified the safe harbor rules before.
Senate Republicans, through the One Big Beautiful Bill, ended this
legal theft for those over the poverty limits. This policy will save
over $19 billion in the next 10 years. Senate Republicans
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also established pre-enrollment verification requirements with
flexibilities for special enrollment periods.
This will save over $40 billion. This is good news for the taxpayers
but, particularly, fairness in this program.
I yield the floor.
I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The senior assistant legislative clerk proceeded to call the roll.
Mr. SCHUMER. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.