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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