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Thursday, January 23, 2014

HHS Document Warns ObamaCare Web Site Failure Puts "Entire Health Insurance Industry at Risk."

So why did the smartest people ever to hold high office (they say) leave the most critical part of ObamaCare undone after three years?

Hundreds of millions of dollars and three years effort and the company represented by a Michelle Obama pal never built the most important part of the ObamaCare web site. The part that actually went beyond enrollment to payment is missing. Well, team Obama fired that company (not to worry, they still have millions in other government contracts so Michelle's buddies won't go hungry.

Team Obama replaced CGI with Accenture, a Chicago based company where a former Obama campaign operative now works. And they did so with another no bid contract.

Justifying this latest bit of crony capitalism meant using some pretty strong language to describe the problem. Here is an excerpt from the HHS Document:
[T]here is limited time to build this functionality and failure to deliver the functionality above by mid-March 2014 will result in financial harm to the Government. If this functionality is not complete by mid- March 2014, the Government could make erroneous payments to providers and insurers. Additionally, without a Financial Management platform that accounts for enrollments and associated program costs (i.e. Advance Premium Tax Credits (APTC), Cost Sharing Reductions (CSR), payments to insurance plans, etc.), that integrates with the existing CMS Accounting platform (HIGLAS), the entire healthcare reform program is jeopardized by significantly increasing the following risks:
• Creating erroneous estimates of budgeted and projected payments associated with operating the FFM;
• Inaccurate issuance of payments to health plans which could seriously put them at financial risk; potentially leading to their default and disrupting continued services and coverage to consumers;
• Inaccurate forecasting of Risk Adjustment, Reinsurance, and Risk Corridor; potentially putting the entire health insurance industry at risk; and
• Failing to support the end of the year reconciliation with IRS; leading to greater program costs for workarounds.
Question: If three years and hundreds of millions in taxpayer dollars wasn't enough to build this right the first time what's the chance that less than two months and $91 million more will get it done right this time? The collapse of ObamaCare may happen sooner than we think!

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