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KY’s Exchange Site Will Cost $254M For One Year

From the NBC Lexington, KY affiliate, WLEX:

The Real Cost To Kentuckians For The Affordable Care Act

October 24, 2013

… LEX 18 just got new numbers from the Governor’s office Thursday afternoon. Were told 26,000 Kentuckians have enrolled in new health care plans. But at what cost? …

Even LEX 18 only gets around to mentioning that 82% of these enrollees actually signed up for Medicaid at the end of the article.

What could you do with $254 million dollars? It sounds like a question we would ask for a lottery story. But that is how much is being spent to set up and run the Kentucky health benefits exchange. That cost does not cover any health insurance – that $254 million is just to set up the system.

And, in fact, the system is simply a website. But actually, the $254 million is to set up the website and run it for a year, as we will see later.

So what are we getting for $254 million? The numbers are really staggering. That is the amount the state received in federal funds. We received four grants… All of the money is being used to set up the program, not one dime is going to actual health care…

So this is costing the US taxpayer, not just Kentuckians.

They need staff for both the computer center and call center. This is the expensive part, and our fourth grant, which was $182 million dollars, and that was to help meet the federal certification requirements for our health benefit exchange and then to fund the operations of the exchange through 2014.

In total, there are 100 people working the call center. All of them are employees of the Xerox company., which is the company hired to run and operate the call center. The Cabinet for Health and Family services has hired 60 special computer IT contractors, plus another 40 IT people have been brought in from another outside contractor. So, in total, 123 people are running this website and manning the [Kentucky exchange’s] phone center.

Total funding around $254 million dollars as of this date, and about $80 million of the funding has been spent.

To drill down into these numbers a little further – $80 million has been spent by the state so far, and they have $174 million left to cover operational expenses for the next year.

Any way you slice it, over a quarter of a billion dollars for one state exchange is a helluva lot of money to set up and run a measly website for a year. And we suspect Obama has given as much money to other state exchanges.

And all that money could have been better used just to give people insurance, instead of creating all of these patronage jobs.

So far, the state tells us they have enrolled 26,000 people into new healthcare plans. 21,342 have enrolled in Medicaid.

Do these numbers have your attention? There’s more. To maintain the website for the next five years also has a cost, and the cost to you and your current healthcare insurance is also in line to take a hit.

Again, it’s the US taxpayers who are taking the hit.

This article was posted by Steve Gilbert on Monday, October 28th, 2013. Comments are currently closed.

3 Responses to “KY’s Exchange Site Will Cost $254M For One Year”

  1. BannedbytheTaliban

    $254 million is nothing compared to the amount the US tax payer will have to pay for all the extra Medicaid patients.

  2. I met the Kentucky State Comptroller. He did not impress me as a guy who can count to potato.

    /I spotted him pot and the last o

  3. yadayada

    wow….

    123 employees running website and call center. $254 million
    over $2million per employee for one year.

    wow

    an untrained monkey with a sandwich board could round up 500 professional people and do it for 1/2 that. and get it done right the first time.
    can you spell kerupshun?


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