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Obama-Care State Exchanges Have Cost $5 Billion

From the Fiscal Times:

Over $5 Billion and Counting for Obamacare Websites

By Brianna Ehley | May 13, 2014

… Largely inoperable state exchange websites in Maryland, Massachusetts, Oregon and Nevada have racked up $474 million federal tax dollars so far… The costs will continue to climb as states scramble to salvage the flailing websites or transition onto the federal exchange.

Maryland will spend an additional $40 million to save its website, which has already cost $90 million. Nevada has spent $50 million to date and will decide in the coming weeks how much more it will spend on repair efforts. Massachusetts will pour an additional $121 million into fixing its severely troubled state portal, while also using the federal portal as a back up plan…

Meanwhile, Oregon’s website, which already cost $259 million, is so troubled that the state has opted to scrap the site entirely and spend an extra $5 million to use Healthcare.gov instead.

The Obama administration had intended for states using the federal portal to gradually transition away from HealthCare.gov and onto their own exchanges. However, since so many states had issues with their websites, it appears that the opposite is happening.

That seems to be the case with everything with Obama-Care. Everything is turning out to be the opposite of what was envisioned.

Minnesota, Nevada and Rhode Island are all considering following Oregon and switching to HealthCare.gov. Not one of the 36 states using the federal exchange intends to set up their own exchanges.

The switch from state-based exchanges to Healthcare.gov essentially means dumping millions of dollars down the drain to start over. And the federal government isn’t the only entity that’s been losing money on the failed or severely flawed websites. As Oregon Live noted, many insurance companies have poured money into customizing their own portals to help consumers navigate their state’s website during the open enrollment period…

As of November 2013, the federal exchange healthcare.gov. is estimated to have cost $677 million according to former HHS, Kathleen Sebelius. Since 2011, the federal government has spent nearly $4.7 billion to help implement the exchanges, the Kaiser Family Foundation estimates…

We would love to hear what the CBO and the Obama administration claimed these exchanges would cost. You can bet it was nowhere near $5 billion.

This article was posted by Steve on Wednesday, May 14th, 2014. Comments are currently closed.

One Response to “Obama-Care State Exchanges Have Cost $5 Billion”

  1. GetBackJack says:

    “Where’d the money come from, Momma? Where?”

    “They mortgaged your future, son.”

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