The Treasury Department and IRS announced proposed rules to strengthen eligibility verification for health insurance subsidies. The rules would close gaps in the verification process to ensure that taxpayer-funded Premium Tax Credits go only to Americans who qualify under federal law.
Beginning in 2027, the rules would restrict Premium Tax Credit eligibility to U.S. citizens, U.S. nationals, and certain lawfully present noncitizens. They would also apply new verification criteria for advance Premium Tax Credit payments.
The announcement follows action by the Centers for Medicare & Medicaid Services (CMS), which removed more than 760,000 unverified enrollees from the Affordable Care Act marketplace. According to the agencies, the removal resulted in $2.2 billion in savings and nearly 1 million Americans receiving $500 refunds for being overcharged for coverage.