Basically, they are using massive amounts of tax payor dollars, to fully pay for the ACA plan of up to $800/mo, where the client gets a free plan, without even providing a social security number, sometimes a fake address, no email address or phone number, and the client never knows that the policy just continues renewing at $0, doesn't file taxes, or reconcile the tax credits..........but the agent keeps getting paid the $20/mo commission. ACA is still the wild west, with lots of fraud being done by bad apple agents. Not saying it's Medicare Millionaire, as I don't know his model.
As someone who once signed up for ACA, that situation would keep someone covered for about 3 months based on my experience. Just the income verification alone will get the policy cut off unless there is a natural disaster exemption.
If what you describe is the case, then things must have changed since it first started.
It was a lot quicker than that when I signed up for ACA back when it started. They gave me a 6 month extension because of a natural disaster. Without that, it was 3 months.
As someone who once signed up for ACA, that situation would keep someone covered for about 3 months based on my experience. Just the income verification alone will get the policy cut off unless there is a natural disaster exemption.
If what you describe is the case, then things must have changed since it first started.
Separate income verification from tax reconciliation.
In today's market, less then 10% if my clients are required to send in proof of income, the Biden admin hates to make it difficult for low income to get coverage. Usually, proof of income is requested when client had high income in past years, and is now reporting much lower income for next year. Yes, you have 3 months to send in docs, or you lose your tax credit.
But, if no income docs are requested, and they do an automatic renewal in years 2 and 3, there are no income docs requested, and the client does not file taxes or reconcile their APTC tax credits, and the plan just continues to be active.........for 2-3 years
Of course that's fraud. And it's happening a lot since the Biden admin is no longer requiring proof of loss of coverage for the past 2 years. Many agents I'm sure are taking advantage of this loop hole.
