The Health Consumer Alliance filed a blistering letter just before Covered California’s Board meeting on Thursday accusing the state’s Obamacare exchange of failing to resolve member issues promptly, including blocked access to care and the inability for individual members to finalize their tax returns.

Despite Covered California plowing through $1.06 billion in federal dollars, HCA warns the program is near administrative collapse.

Earlier this year, California’s health insurance exchange, established under the Patient Protection and Affordable Care Act, was touted as a model for other states to follow. But the program has since been under a barrage of attacks for a myriad of failures, including abysmal enrollment performance and sending out over 100,000 inaccurate tax forms.

HCA’s letter to the Board warns, “We are concerned that public support for the (Affordable Care Act) will erode as more and more consumers encounter these types of tax problems and face exposure to IRS debts and penalties.” The group also alleges that Covered California’s failure to correct subsidy forms has caused some consumers to not be able to receive tax credits or amend their tax returns.

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