Question: It looks like the media has bit into the “subsidy fraud” issue and is chewing on it like a dog with a T-bone. Do you think it’s really going to be a big problem for Covered California?

Answer: They’re barking up the wrong tree by focusing on fraud by applicants who claim lower incomes than actual. At best, they will be getting a loan for 12 months because any excess tax credits will be recovered by the tax collector. The real danger is that people who don’t guess their income correctly will have a painful surprise when they get stuck with a big tax bill on April 15.