Yesterday, the Ways and Means Committee passed Congresswoman Lynn Jenkins’ (KS-02) bill, H.R. 4723, the Protecting Taxpayers by Recovering Improper Obamacare Subsidy Overpayments Act, out of committee by a vote of 22-15. Afterwards, Congresswoman Jenkins released the following statement.

“It is neither good governance nor fiscally sane to treat folks differently for the same issue. When people receive improper Obamacare subsidy overpayments, everyone should be treated identically. My bill, passed out of committee today, would save taxpayers nearly $9 billion over two years by requiring these overpayments to be repaid. This commonsense solution is a simple idea that saves and protects the tax dollars of hard-working Americans.”

CLICK HERETo Watch Congresswoman Jenkins’ Opening Remarks At The Hearing

Congresswoman Jenkins’ Remarks As Prepared For Delivery

"Thank you, Mr. Chairman.

“I’m pleased to speak today about H.R. 4723, the Protecting Taxpayers by Recovering Improper Obamacare Subsidy Overpayments Act.

“This is a simple bill. It is about good governance and our duty to protect the tax dollars of hardworking Americans.

“Let’s review current law.

“The Obamacare tax credits subsidies are based, in part, on income. When taxpayer dollars go out the door to insurance companies to buy an Obamacare plan, the size of the tax credit is based— in part— on a guess as to how much an individual’s income will be during the coverage year.

“But that’s all it is: a guess. 

“Sometimes the guess is too low. The individual actually should have gotten a bigger tax credit to purchase an Obamacare plan. So, when that individual— months later— files their taxes for the coverage year, the federal government has to make that taxpayer whole. That is, the federal government has to make sure the individual has received the full subsidy to which they are entitled.

“But sometimes—sometimes— that guess of future income is too high. And, it turns out more taxpayer dollars were sent to an insurance company for an individual to buy an Obamacare plan than what should have been spent.

“Yet, here’s the rub: under Obamacare, some taxpayers must repay this improper overpayment. But others don’t. They can simply pocket it.

“That’s not fair.

“That’s not good governance.

“That’s not consistent with how we recover improper overpayments in other areas of the tax code. 

“And it is a failure of our role to be good stewards of taxpayer dollars.

“Fortunately, there is recognition— on both sides of the aisle— that the original limitations on repayment of improper Obamacare subsidy overpayments should be changed.

“And that’s what we’ve done. In law. Twice.

“In fact, each and every colleague of mine on the other side of the dais has voted— in the words of former HHS Secretary Kathleen Sebelius— to make the Obamacare subsidy repayment fairer.

“I also want to point out that the recovery of improper payments is not a tax hike.  And this letter from Americans for Tax Reform indicates just that.

“I hope we can continue that sense of bipartisan cooperation today. I ask you all to join me in advancing policies of good governance by supporting my bill, the Protecting Taxpayers by Recovering Improper Obamacare Subsidy Overpayments Act.

“Mr. Chairman, I yield back.”

# # #