Manatt Professional Comments on New Federal Exchange Glitch

Manatt's Jocelyn Guyer, a director with Manatt Health, spoke to the Philadelphia Inquirer about a newly discovered glitch in the federal health exchange.

The Philadelphia Inquirer reports that the federal health exchange, Healthcare.gov, has been telling eligible people that they do not qualify for subsidized insurance. The error primarily affects households with incomes just above the poverty line in states that have not expanded Medicaid. The mistake raises the price of their insurance by thousands of dollars.

Consumers whose incomes slightly exceed the high end of eligibility initially discover they are eligible for tax credits to lower their premiums. In theory, accepting a tax credit for which you're not eligible could make you liable for unpaid income tax when the IRS processes the return, said Guyer.

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