Accidental dual enrollment in healthcare.gov marketplace plan and VA Healthcare

Hello al!

I am a Veteran, and applied for VA Health Coverage in 2012. I was denied due to the fact that I had only served in the military for 19 months, and there is a minimum 24 months of service required for VA Healthcare Coverage.

Starting in 2015 I began enrolling in Marketplace plans for my healthcare, and renewed yearly including this last enrollment period.

In 2020 I applied for PTSD disability with the VA, and was approved at 70% in August of 2021. I did not apply for VA Healthcare again, knowing I had been denied in 2022 due to lack of time in service…but apparently the VA automatically went back to that 2012 application and based on the changes in my VA record (the PTSD disability), changed my status to active within VA Healthcare. So technically I have had active VA Healthcare from August 2021 without knowing I did. During this time between August 2021 and now, I have also had an active marketplace plan, which I have been using like normal. To be clear, i NEVER used the VA Healthcare, did not even have a VA card, never enrolled, never went to a VA hospital, etc. I had received a general letter from the VA at some point about VA coverage and information, but I thought this was only related to coverage directly related to my PTSD (which does not count as dual enrollment, but also which I never used anwyay), because I had not ever enrolled for VA Healthcare again, and the only time I had in 2012 I had been denied.

Earlier this week I am looking through my VA account online, and notice that it is asking me if I want to get my VA card online…and just start exploring, and realize that it looks that I am now eligible for VA Healthcare. So I call the VA, and they explain everything I have explained above…that I have actually been active in their system since August 2021 due to them automatically going back to that 2012 application.

So basically, between August 2021, and March 2023, I have been dual enrolled in the VA system, and in a Marketplace system. The VA is telling me that while this might be an issue for taxes, it would cause a penalty (because VA coverage is seen as a benefit, not an insurance? Is what they explained), but not a retroactive billing for the marketplace credits I received between August 2021 and March 2023.

Firstly, is this accurate about the penalty vs. back billing of the credits amount (which would be close to 10k at this point)? And if it is, how much would this penalty be?

And secondly, is there any way for me to fight this and get this fixed so that I am not held responsible for this dual enrollment? I never applied for VA Healthcare in 2021, nor used ANY of its services, nor had a VA Healthcare card, nothing.

Any help would be hugely appreciated!! Thank you!

submitted by /u/idkprogressive
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