The U.S. government¬† announced it will move to an “honor system” in 2014 for coverage and income verification. States operating marketplaces, such as Covered California¬† in California¬† will not be required to confirm a consumer’s statement that he or she does not have employer-sponsored coverage, nor will states have to verify reported income, which determines a person’s eligibility for a premium subsidy. Income verification has been postponed until 2015. However, consumers who misrepresent their income on the application for exchange coverage are subject to a penalty of up to $25,000.

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