Government Announces HealthCare.gov Costs $840 Million. Guess Why.

July 30, 2014

In a recent probe, the nonpartisan Government Accountability Office found that the disastrous HealthCare.gov rollout was due to the Administration’s lack of “effective planning and oversight practices.”

With the lack of planning and oversight, the Administration’s constant change of task for the contractors created wide spread confusion and increased the cost of HealthCare.gov to $840 million. Furthermore, the GAO report found that the contractors’ tasks were changed forty times “when government officials did not have the formal authority to incur additional costs.”

As more reports come in, the rollout of HealthCare.gov continues to be a major nightmare for Democrats this midterm election cycle. With less than 100 days, Democrats are running away from ObamaCare as voters have had enough of this devastating law.

From The Associated Press:

  • Contractors were not given a coherent plan, and instead they were kept jumping around from issue to issue.
  • The cost of the sign-up system ballooned from $56 million to more than $209 million from Sept. 2011 to Feb. 2014. The cost of the electronic backroom jumped from $30 million to almost $85 million.
  • CMS, the lead agency, failed to follow up on how well the contractors performed. At one point the agency notified one contractor it was so dissatisfied that it would start withholding payments, and then quickly rescinded that decision.
  • The type of federal contract that the administration selected for HealthCare.gov was open-ended, which may have encouraged costly changes.