The latest figures are in on the seemingly bottomless hole that is healthcare.gov, the troubled federal insurance marketplace web site. By any measure, the Obama Administration was grossly negligent in the creation of the system, which ultimately failed on its rollout despite numerous warnings of substandard work, overruns, and major technical problems. It appears that we are not done with bill for the program. A new Inspector General report stated that the Obama Administration issued sixty contracts from 2009 to 2014 to build Healthcare.gov, which had already cost roughly a half a billion dollars by February 2014. However, the Administration has signed new contracts that obligate the taxpayer to cover an addition $300 million, and the estimated value of the sixty contracts totals $1.7 billion. Despite numerous accounts and reports on the mismanagement of this program, there appears to be little real effort to hold anyone accountable as we continue to pour hundreds of millions into this system. The contracts include money to CGI Federal, the well-connected company that was partially response for the disaster in October as well as other controversies in large contracts.
With some contracts obligating as much as $200 million, healthcare.gov has become a major cash cow for some companies like Booz Allen Hamilton, Deloitte, Lockheed Martin, Northrop Grumman and HP Enterprise Services. Of the 60 contracts, nearly $800 million has been committed for the development of the Federal Marketplace as of February 2014.
Worse yet, The Hill is reporting that the Administration is due to pay at least 20 contractors more than their original estimates for work on HealthCare.gov and the rollout of ObamaCare. Thus, the overruns are continuing and, despite the dismal work done on the rollout, even the most dubious companies are continuing to benefit from the windfall. Most notably, while one 2011 contract with CGI Federal was estimated to be worth $93 million at its awarding, CGI Federal could ultimately receive more than $200 million. The CGI Federal contract (and its dismal performance) has been the source of considerable criticism over the companies connections to fundraising for the Obama campaign and personal connection to the First Lady (Toni Townes-Whitley, a senior vice president at CGI Federal, was a Princeton classmate and friend of First Lady Michelle Obama). I am less concerned over the personal relationship allegations (which seen speculative at this point) as with the simple question of how a company (one of a number of companies) could continue to produce subpar work on a major federal project and still receive massive overrun payments.
What is maddening is that the House of Representatives killed one of the oldest programs in the United States, the page program, for $5 million dollars but it barely makes news that we will spend $1.7 billion on a grossly managed marketplace website. Overruns are shrugged off and you will barely find any mention of the IG report among the major media.
141 thoughts on “Obama Administration To Spend $1.7 Billion On Healthcare.gov”
Quality posts is the important to be a focus for the users to pay a quick visit the site, that’s what
this web site is providing.
This amount is a drop in the bucket compared to the $1 trillion per year our current health care system wastes compared to every other developed country. ($3200 per person per year x 312m)
What do we get for that extra $1 trillion? Prior to Obamacare, 25% uninsured or underinsured, killing 30-40,000 per year. Compare that to every other developed country and the $1 billion for the systems is a small part. And besides it depends on the ‘overpromise, overcharge and underperform’ software industry in the US which has destroyed many a business.
This would be an appropriate time to tell you KSG, how the cow ate the cabbage.
What’s yur f’in point? This helps people. How bout focusing on the money the ahole Repubs spent trying to repeal it. Or, how about how many have died in states they won’t allow it? Are they guilty of murder?
There was that discussion a while back about KBR and others becoming a cartel of death. I would expect they will ramp up their government access and funding by extreme intimidation as well as lucrative donations. “Your family will be well off… or not.” If it gets to that point for gov officials, we can say they brought in on themselves, but we’ll have to pay the consequences too.
David, JT’s post lists the following corporations as engaged in fraud via the taking of taxpayer money: “With some contracts obligating as much as $200 million, healthcare.gov has become a major cash cow for some companies like Booz Allen Hamilton, Deloitte, Lockheed Martin, Northrop Grumman and HP Enterprise Services. Of the 60 contracts, nearly $800 million has been committed for the development of the Federal Marketplace as of February 2014.”
If you look up a whose who of these companies you will see many familiar names in all sorts of shenanigans.
Now when the war contractors, such as KBR, electrocuted our troops and failed to feed or clothe them, I feel affronted by that, don’t you? I think that’s illegal and disgusting. I hope you would agree with me about that.
“Karen, You live in a socialized state that will be bankrupt soon. I love the state but they need to clean house in Sacramento.”
YES! But we live in a state with huge numbers of illegal immigrants. They are not only a drain on the state, but our Democratic politicians court them as a massive source of votes, in their efforts at amnesty.
There are pushes to give people who came here illegally driver’s licenses, let them sit on juries (although they broke the law to come here and likely do not know our laws), and, of course, the push for amnesty. ID theft, social security fraud, and hit-and-run shakedowns are rampant in my state. There are drug cartels and Mexican gangs common in LA now.
But, that’s the cause and effect of open borders.
Pending further clarity, I cannot imagine anyone taking offense if you responded to what you understand her point to be.
Is she talking only about CGI Federal and other corporations hired to work on HealthCare.gov?
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