The Obama administration sent the wrong tax form to 800,000 people who purchased health insurance through the healthcare.gov website, which caused critics to question the administration’s competency.
Of that 800,000, the administration reported 50,000 already sent in their tax returns using the wrong form, which is used to calculate a customer’s eligible tax credits. The administration is contacting the remaining 750,000 Friday to correct the matter before more forms are filed. The Treasury Department will contact the 50,000 that already filed, officials said Friday.
The administration emphasized that the number of people affected by the error is less than one percent of total tax filers.
However, several critics of the healthcare law pounced on the error on Twitter.
Rep. Marsha Blackburn, R-Tenn., called the error the latest “colossal blunder” from the administration. “Surprise, surprise, the Obama administration still does not have its act together,” said Blackburn, vice chairwoman of the House Energy & Commerce Committee.
Obama administration sent 800,000 #ObamaCare enrollees wrong tax information. Many will have to resubmit returns. → http://t.co/RyVyLK83ko
— Senate Republicans (@SenateGOP) February 20, 2015
800,000 http://t.co/8Q75mwfCXu customers received wrong tax info from Fed Gov’t. http://t.co/RVmyDCBNfy #Obamacare
— House Republicans (@HouseGOP) February 20, 2015
The tax form 1095-A is sent to healthcare.gov customers to see if they are eligible to receive tax credits under the law. The problem is the wrong form contained an incorrect benchmark plan premium amount, which can throw off how much credits someone should receive.
It is unclear how the wrong form impacted the 50,000 tax returns already filed. Some might have gotten higher tax credits and others may have gotten lower, Andy Slavitt, principal deputy administrator for the U.S. Centers for Medicare and Medicaid Services, said during a Friday call with reporters.
He added that the cause of the error is still unknown.
In the meantime, the administration wants those that haven’t filed their returns to hold off until the first week of March, when they receive the new form, or go online for the correct information before filing.
Slavitt said the administration is phoning and emailing affected people Friday to make them aware of the change.
The federal government isn’t the only one with form headaches. California’s healthcare exchange announced recently it sent out incorrect forms to 100,000 customers.
