Tuesday, May 20, 2014

Failed Obamacare Exchanges and No-Work Contracts Drive up Obamacare Costs

by Hans Bader on May 19, 2014

Politico tallies the rising costs for “four failed Obamacare exchanges,” reporting:

Nearly half a billion dollars in federal money has been spent developing four state Obamacare exchanges that are now in shambles — and the final price tag for salvaging them may go sharply higher.

Each of the states — Massachusetts, Oregon, Nevada and Maryland — embraced Obamacare, and each underperformed. All have come under scathing criticism and now face months of uncertainty as they rush to rebuild their systems or transition to the federal exchange.

The federal government is caught between writing still more exorbitant checks to give them a second chance at creating viable exchanges of their own or, for a lesser although not inexpensive sum, adding still more states to HealthCare.gov. . .The $474 million spent by these four states includes the cost that officials have publicly detailed to date. It climbs further if states like Minnesota and Hawaii, which have suffered similarly dysfunctional exchanges, are added.

CNS News and KMOV TV describe how Obamacare is hiring hundreds (or perhaps thousands) of employees to do nothing for weeks on end in largely-useless application-processing centers (such as processing virtually non-existent types of paper applications)....To Read More.....

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