After months of arguing and posturing, President Barack Obama finally got his healthcare plan passed last year. However, officials have recently discovered a section of the law that would allow middle-class people to receive practically free insurance, according to the Associated Press.
The individuals affected would be early retirees through changes to the Medicaid system. The way the bill is currently written, a couple with an annual income of $64,000 would be eligible for Medicaid, the media outlet reports.
If the law remains written this way, close to 3 million people could be eligible for Medicaid in 2014, allowing them to put more money into investments such as life insurance policies and annuities.
The potential $450 billion glitch is due to the fact that most Social Security benefits would no longer be calculated as income when determining Medicaid eligibility, the AP reports. Medicare's chief actuary Richard Foster is losing sleep over the issue, even if he feels others are not.
"This is a situation that got no attention at all,’’ Foster told the media outlet. "And even now, as I raise the issue with various policymakers, people are not rushing to say...we need to do something about this."