The Obama administration says six of the GAO's fake online applications were blocked by eligibility checks built into computer systems at HealthCare.gov.But the GAO says its undercover agents found a way around that, and were able to enroll anyway.
"We are examining this report carefully and will work with GAO to identify additional strategies to strengthen our verification processes," administration spokesman Aaron Albright said. At least on paper, fraudsters risk prosecution and heavy fines.
GAO said its investigators concocted fake identities using invalid Social Security numbers and falsely claiming citizenship or legal residence. In other cases, they made up income figures that would disqualify them from getting subsidies.
Among the findings:
-Contractors processing applications for the government told the GAO that their role was not to ferret out potential fraud.
-Five of six bogus phone applications went through successfully.The one exception involved an applicant who refused to provide a Social Security number.
-Six online applications were snagged by an identity checking system. But investigators just dialed a call center and all six were approved. That seemed to be an open pathway to coverage.
-The GAO also tried to check the reliability of counselors providing in-person assistance. In five out of six cases, investigators were unable to get help. In the final case, the counselor correctly told the undercover investigator that their stated income would not entitle them to subsidized coverage.