For a year, consumers will be on the honor system for subsidiesunder the Patient Protection and Affordable Care Act.

That's what the Obama administration quietly announced lastweek, days after unexpectedly announcing they would delay the employer mandate penalty for another year.

In a new 606-page rule published Friday, the administration saidit would significantly scale back on the law's requirements thatthe new exchanges verify consumers' income and health insurancestatus until 2015, when stronger verification systems are inplace.

In the meantime, the government will rely on consumers'self-reported information.

Health insurance exchanges set up under PPACA are set to beginopen enrollment Oct. 1. Enrollees with incomes ranging from 100% to400% of the federal poverty line are eligible to receive taxsubsidies to help them buy insurance. They also must not haveaccess to insurance through their employer to qualify.

“The exchange may accept the applicant's attestation regardingenrollment in eligible employer-sponsored plan . . . withoutfurther verification,” according to the final rule.

The administration has said they would conduct random checks toverify whether new applicants receive employer-sponsored insurancebenefits, while also verifying income status.

But the new regulations from the Department of Health and HumanServices said the 17 state-based exchanges would have until 2015 todo random checks, citing “legislative and operationalbarriers.”

In all 50 states, though, the federal government will scale backoversight of what applicants say they earn.

That move, some critics say, could lead some consumers toover-report their income in order to qualify for federal taxsubsidies, at least in states that are not expanding Medicaidcoverage.

In the same rule, the government said it would give states until2015 to roll out electronic notices because “states are atdifferent places in the development of their eligibility andenrollment systems,” HHS said.

The rule is the latest setback in the health care overhaullaw.

Last week, the administration announced it would not requireemployers with 50 workers or more to provide insurance benefitsuntil 2015, a move business groups applauded but Republicansslammed as confirmation that “Obamacare costs too much and it isn'tworking the way the administration promised.”

The administration has said the exchanges and other parts of thelaw are on target, and they are making delays andchanges to better suit the public and employers.

Troy Underwood, CEO of Benefits Connect in Rancho Cordava,Calif., said, though, that he expects to see more PPACA delays andmissed deadlines as the months go by.

“Platitudes, political favors and hope never replace a solid andrealistic plan,” Underwood said. “As an expert in the processingand administration of employee benefits I can tell you thegovernment's efforts, even if well-intentioned, are grosslyinefficient.”

This article was originally posted at LifeHealthPro.com, a sistersite of Credit Union Times.