GAO: Obamacare Rollout Failures Due To Gross Negligence and Lack Of Management

President_Barack_Obama250px-Kathleen_Sebelius_alternate_HHS_portraitI have often lamented how there does not appear to be any real sense of accountability left in Washington. (For a column, click here). Billions of dollars are wasted or programs are run into the ground, but rarely are people held accountable. Part of the reason is the duopoly of power. Politicians have so convinced voters to adopt this red state/blue state paradigm that Democrats and Republicans will no longer tolerate any criticism of their respective leaders or parties. It is, to put it simply, nothing short of a scam. We have become so programmed by the respective parties that any negative story about our respective party automatically unleashes an attack on how much worse the other party is or would be in a given area. It is the same phenomenon that we saw during the Bush Administration where Republicans remained silent in the face of failed policies and poor administrative decisions. We have become a nation of apologists.

One of the greatest examples that I have previously discussed is the Affordable Care Act (ACA). The Democrats deserve ample criticism first for a law that was poorly drafted and vetted (when I spoke on Capitol Hill before its passage, I said I was in favor of national health care but thought this was one of the worst crafted major pieces of legislation I had seen go to the floor of Congress.). After doing a uniquely bad job in drafting the law, the Obama Administration then did an absolutely appalling job in managing the program in its critical rollout despite years of planning and billions in costs. Now, the independent Government Accountability Office (GAO) has completed its investigation of the disastrous rollout and found gross negligence that drove up costs and crippled the start of the program. The response? Crickets. Nothing.

The GAO concluded that the Obama Administration lacked the most basic management discipline in creating “effective planning or oversight practices” for Healthcare.gov — the key component of the rollout. Investigators found gross negligence with the Administration constantly changing directions to contractors, widespread confusion among Administrators, and millions of unnecessary cost overruns. It also included over 40 instances where Obama Administration officials increase expenditures without authority. In the meantime, insiders benefitted from the gushing of federal funds like Jonathan Gruber who received almost half a million dollars as a consultant. The government has spent some $840 million on Healthcare.gov and its supporting systems. Almost one billion on a website that failed.

Take the computerized sign up system. Thousands of companies have such systems in business. However, the Obama Administration drove up the costs from $56 million to more than $209 million from Sept. 2011 to Feb. 2014 and still produced a dysfunctional system. The verification system for information was allowed to grow from $30 million to almost $85 million. A contract for fixes to the website, also grew from $91 million in January to $175 million as of last month. Website fixes went from $91 million in January to $175 million as of last month. That’s right, the costs are increasing for such fixes. At any private business, such a record would result in massive firings and a stockholder revolt.

Contractors who were widely criticized for negligence were warned but ultimately paid in full. Take Virginia-based CGI Federal, which built HealthCare.gov. The system failed on the first day and led to a snow balling catastrophe. However, the Administration paid all of CGI’s $12.5 million in fees, withholding only $267,000. We previously discussed the company’s highly dubious record.

While the Administration and former Health and Human Services Secretary Kathleen Sebelius later said that they were entirely unaware of the problems, that was obviously the problem. It was their job to be fully aware — not just to throw hundreds of millions of dollars at problems and hope everything was fine for the rollout. The problems were so extensive that contractors refused to sign off on the rollout. CMS administrator Marilyn Tavenner had to personally sign off (an unusual act) because no one else would. Wasn’t that a bit of an indicator that the system was not ready?

None of this matters of course. For Democrats, any criticism of Obamacare is treated as a criticism of Obama in today’s encoded political discourse. Ironically, the negligence of the Obama Administration in the rollout helped worsen the view of voters toward the law and the Democrats. Disapproval of the law now stands at 55 percent and Obamacare is featuring prominently in the backlash. This could have been quite different if the Administration had done a competent job at the rollout. The Democrats are at risk of losing both houses and many of those losses may prove to be self-inflicted wounds from simple negligence and the lack of accountability.

Here is the report.

91 thoughts on “GAO: Obamacare Rollout Failures Due To Gross Negligence and Lack Of Management”

  1. Darren:

    “The government and the bureaucracy can point fingers of blame all they want but, ultimately it is Congress and the President who are responsible for this mess. And the public should vote accordingly but as Professor Turley stated, the politics are going to tame any real demand for accountability.”

    So true.

  2. @nicks

    I think it is more those lefties that have a nexus to government. I mean think of Anthony Weiner. Can you imagine him holding down a real job where he has to account for his time and justify his paycheck??? And some of the righties are no better, having fallen off into all that Ayn Rand childishness. But for both groups, they are living by their theories to the exclusion of reality.

    Squeeky Fromm
    Girl Reporter

  3. I know someone who grew up in the USSR. She said that her father had a black market business. It meant that her family ate better than most people, but they lived in fear that they would be found out. Imagine. Living in fear that you would be discovered owning a business.

  4. You are to recall that it was recently discovered that 8 cardiologists in the single payer VA system had the workload of a single private practice cardiologist.

    Why?

    Because it’s not in the government workers’ self interest to work harder or more efficiently. But a business owner, like a private practice cardiologist, does see a return.

    When you work harder, or better, but it doesn’t matter, then human nature seeks the lowest level. Hence why capitalism, in general, has lifted more people out of poverty than socialism, which makes people equally miserable and poor. You can have stale government bread, or you can open an artisanal bakery.

  5. And this is one of the main reasons why I oppose nationalized health care. Past behavior predicts future. We’ve all seen how government unions create sloth, inefficiencies, and employees who are unfireable no matter what they do. They could engage in fraud and kill people, essentially murder, and they can’t be fired. Our procurement system, time and again, overpays and under delivers. That would be the same infrastructure that would handle nationalized health care.

    We’ve already seen what happens when government meddles in industry, such as Obamacare. Premiums doubled, deductibles increased 1100%, and doctor choice decreased. The answer is not giving even MORE power to the government. Because it is foolish to keep repeating an experiment and expect a different result.

    Private industry creates products and services that customers want, and price is set accordingly. Government systems reduce competition and choice, creates products and services customers do not want, and then they fine them for not buying it.

  6. We have developed a ruling government class in this country.

    When a private citizens lies, cheats, or steals, there are legal and civil consequences. But there is no accountability for government employees or politicians. The government unions ensure that under performers are unfireable. Even when people die, due to fraud, as in the VA scandal, those responsible cannot be fired. In fact, a measure that would have allowed them to be fired was defeated along party lines in Congress. And if you’re high enough up in politics, you can break the law with impunity. You’ll even get a raise. Take Lois Lerner, for example. She pled the 5th, and has refused to answer questions on her role in using the IRS to target conservatives. And yet, there still have been no consequences. The people affected still have not been interviewed by the FBI. The lawyer representing True the Vote has repeatedly complained at the lack of accountability or repercussions on the case. And the only one investigating, so far, is Eric Holder, who has himself been held in contempt of Congress, twice, I believe. The IRS has completely resisted any efforts for an outside investigator to have access. They just say, there’s nothing to find so we won’t let you in.

    We should all be held accountable to the same laws. How would it be if someone on trial for murder pled the 5th, and the judge said, “Well, that’s it, then. If you won’t say, we’ll have to just let it go. Have a nice day.”

  7. Accountability? Responsibility? The President, Congress and the entire bureaucracy perform to the standards the People hold them to. Why in the world would any public servant point a finger at themselves when they will satisfy their constituency by pointing a finger elsewhere? If they do that, they are assured to be among the 90% who win reelection. This quote captures it well:

    “Now more than ever before, the people are responsible for the character of their Congress. If that body be ignorant, reckless and corrupt, it is because the people tolerate ignorance, recklessness and corruption. If it be intelligent, brave and pure, it is because the people demand these high qualities to represent them in the national legislature … If the next centennial does not find us a great nation…it will be because those who represent the enterprise, the culture, and the morality of the nation do not aid in controlling the political forces.” – James Garfield 1877

  8. Squeeky, What was so poignant was when he listed the professions that are virtually exclusively liberals. Occupations where you actually have to PRODUCE have a good mixture of all groups, including liberals. Not all liberals are stupid and lazy.

  9. @nicks

    I am glad you liked it. My father always said your average mechanic was smarter than your average college professor because the mechanic can’t hide his mistakes for 20 or 30 years. If the car don’t run, somebody is in his face within a few minutes.

    Squeeky Fromm
    Girl Reporter

  10. http://www.forbes.com/sites/brucejapsen/2014/07/20/hospitals-see-troubles-in-red-states-that-snubbed-obamacares-medicaid-deal/ “While record numbers of Americans sign up for the larger Medicaid health insurance program for the poor, financial issues are emerging for medical care providers in the two dozen states that didn’t go along with the expansion under the Affordable Care Act.

    Reports out in the last week indicate the gap between those with health care coverage is widening between states that agreed to go along with the health law’s Medicaid expansion and those generally led by Republican legislatures and GOP governors that are balking at the expansion.” I think Texas has the highest number of uninsured people.

  11. SWM, The people signing up are the people w/ a free ride. Young people are saying “Screw you,” I’ll take the fine..err “tax.”

  12. raff, I was forthright in admitting I could not PROVE collusion and gave an explanation why. Having worked for the prosecutors office, I worked cases where we knew the defendant was guilty, but we simply could not prove it. That did not make the charge false, merely not provable. I would have thought a barrister could understand the profound and fundamental difference. But, obviously you do not, evidenced when you pounced when I honestly admitted I could not prove it. I do not believe the allegations false. I would NEVER have made them if I did. So, I guess we have to let it go unresolved, both believing we have had our integrity besmirched. C’est la vie.

  13. I worked w/ a who went back to school and got his MBA. He was hired by 3M to sell to govt. agencies since he worked for the govt. after undergrad. He learned quickly the dirty little secret @ 3M and ALL companies that sell to the govt. “Sell them the stuff nobody else will.” It’s easy because you’re selling to people w/ a money tree[power to tax] and no accountability. This is a pretty basic concept most people easily understand. The company that did the Obamacare website obviously did what I just explained.

  14. http://www.washingtonpost.com/national/health-science/medicare-finances-improve-due-to-aca-lower-hospital-expenses-social-security-stays-the-same-trustee-report-says/2014/07/28/5db1a2a2-165a-11e4-9e3b-7f2f110c6265_story.html “Medicare’s financial stability has been strengthened by the Affordable Care Act and other forces that have been subduing health-care spending, according to a new official forecast that says the fund covering the program’s hospital costs will remain solvent until 2030 — four years later than expected a year ago.

  15. @swm

    I read your link and it seems to show that more people have Medicaid. Also that there are less uninsured. I wonder how the deductibles are being paid, though??? Because people don’t just magically get $6,000 to $12,000 a year extra to pay the deductibles???

    Squeeky Fromm
    Girl Reporter

  16. Both the legislation and the healthcare.gov development suffered the same fate. Rushing in with very little planning and having those not qualified to make technical or planning decisions run the show.

    The government and the bureaucracy can point fingers of blame all they want but, ultimately it is Congress and the President who are responsible for this mess. And the public should vote accordingly but as Professor Turley stated, the politics are going to tame any real demand for accountability.

  17. http://www.bloomberg.com/news/2014-07-30/obamacare-dividends-pile-up-for-hospitals-as-patients-pay.html Obamacare got off to a rocky start for sure although things seems to be improving. Hospital profits are up due to fewer uninsured. Taxpayers have been helped, too, due to the fact that medicare spending only was up only minimally. I was listening to a ceo from Aetna on the news yesterday who thought the cases would take two years to wind through the courts but in the end the ACA would stay.

  18. Paul,
    I released your comment from the spam filter.
    Nick,
    You can’t put it behind us until you admit publicly that you made an intentionally false statement about myself, Elaine and Chuck.

  19. “Help. The Vortex of Doom ate my comment. Help, please.”

    Kids posing as grown-ups.

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