Aug. 14—The IRS issued a final rule this week specifying the ways the Affordable Care Act will share taxpayer information.

The agency plans to share individuals’ information, including their income and tax filing details, with states and other federal agencies to determine their eligibility for coverage through a marketplace insurance plan and whether the applicants qualify for federal subsidies.

The security of that data sharing was questioned by an Aug. 2 report from the HHS Office of Inspector General. The report found that the Centers for Medicare & Medicaid Services (CMS) has delayed by weeks or months the expected completion dates for a range of security-related components in the Data Services Hub—a data sharing tool at the heart of the coming insurance marketplaces.

That report was followed by the Aug. 12 call by Senate Minority Leader Mitch McConnell (R) for a one-year delay in the launch of the exchanges to ensure the security of their data. 

In a separate announcement, CMS detailed planned computer matching agreements with the IRS and Veterans Health Administration that will govern information sharing in the marketplaces’ Data Services Hub. CMS will accept comments on the notices for 30 days after Aug. 14.

Publication Date: Wednesday, August 14, 2013