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Covered California Q&A

Covered California and Obamacare related questions from consumers, employers and agents are answered by Phil Daigle with the best information available at the time. Archived entries may no longer be accurate as the Covered California and Obamacare knowledge-base is evolving quickly. TO REQUEST A PERSONAL RESPONSE INCLUDE EMAIL ADDRESS.

Subsidy Fraud a Red Herring?

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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.

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