"Here’s how pathetically bad Obamacare’s federal insurance exchange is at detecting fraud: 11 completely fake enrollees who were improperly granted subsidies last year in a damning and widely covered undercover investigation by the Government Accountability Office (GAO) were automatically re-enrolled again, according to an AP report. Some of them even got higher subsidies this year.

The system, in other words, allowed the fraud to happen—and then, even after the undercover op was revealed, mindlessly repeated the fraud again the following year.

The government watchdog reported last summer that it had created a dozen fraudulent accounts using fake names and made-up Social Security numbers. It was an undercover sting, but it didn’t rely on any particularly clever scheme; GAO employees simply called in or got online and went through the normal application process using made-up information. Of the 12 attempts, 11 made it through the process. When the GAO released its report in July, 2014, the subsidies were still being issued.

They never got cut off. In fact, all 11 fraudulent accounts were re-enrolled by the system, according to an Associated Press report.

The AP obtained early access to a new GAO report and testimony scheduled for tomorrow, and reports that of those 11, six were "flagged and sent termination notices." But five of the six terminated accounts were reinstated after GAO officials pulled the nefarious and daring trick of…calling to ask for them to be reinstated (the sixth remains under review). The five reinstated accounts, the AP reports, "even got their monthly subsidies bumped up a bit, although GAO did not ask for it."

http://reason.com/blog/2015/07/15/health...-fraudulent-oba