The House bill creates an "exchange" and "all individuals," which would include illegal aliens, are eligible to participate in the exchange. Anyone who participates in the exchange, and does not otherwise have health insurance, can either enroll in the public option plan created by the House bill or enroll in a private insurance plan.
Accordingly,
the first loophole that provides illegal aliens with health insurance is the ability for illegal aliens to freely enroll in the taxpayer-subsidized public option. According to CRS, "H.R. 3200 does not contain any restrictions on non-citizens — whether legally or illegally present, or in the United States temporarily or permanently — from participating in the Exchange." (CRS Report). Accordingly, illegal aliens can enroll in the public option, courtesy of the American taxpayers, to meet their health insurance needs. (See
CNN.com, August 2009).
The second major loophole is the failure to require any meaningful verification procedure for taxpayer-subsidized insurance credits. Under the House bill, individuals who buy private insurance through the Exchange may receive an affordability credit to offset the cost of insurance. This credit is ostensibly limited to individuals lawfully present in the U.S., but CRS (like FAIR) notes the
complete absence of any provision in the House bill that requires verification of eligibility for the affordability credits.
Without such a mechanism, there is nothing in the bill that will prevent illegal aliens from receiving this taxpayer subsidy to buy private health insurance.