Government Watch

Twenty Obamacare Contractors Exceeded Cost Estimates, Review Finds

Money and Obama Carefrom – The Hill – by Elise Viebeck

The federal government is due to pay at least 20 contractors more than their original estimates for work on HealthCare.gov and the rollout of ObamaCare, according to an official review released Tuesday.

The Department of Health and Human Services inspector general (IG) found that federal contracts on the rollout exceeded $1.7 billion in value.

Seven companies are due to receive more than double their initial estimates, the IG report stated.

The government was obligated to pay nearly $800 million for 60 contracts related to the federal marketplace as of February 2014. By that time, it had spent nearly $500 million.

The IG review is perhaps the first to sketch the financial consequences of the technical problems that nearly killed HealthCare.gov and several other exchanges last fall.

The audit also reveals a who’s who of Washington contractors that stood up the new insurance system and reaped significant sums for their work.

Companies like Booz Allen Hamilton, Deloitte, Lockheed Martin, Northrop Grumman and HP Enterprise Services all had some hand in creating the federal marketplace. 

Other firms like CGI Federal, which led the implementation effort before being fired earlier this year, generated bills on various contracts exceeding $250 million as of February.  

In one case, while a 2011 contract was estimated to be worth $93 million at its awarding, CGI Federal could ultimately receive more than $200 million for that agreement. 

The IG study looked at 60 contracts related but not exclusive to the federal exchange using documents and accounting records through February. 

The report promises to be the first in a series of post-mortems on the cost of ObamaCare’s rollout.


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Antonio Santa Cruz
8 years ago

Do AMAC have a hearing aid plan.

PaulE
8 years ago

Government programs are famous for exceeding their initial estimates by a wide margin. Obamacare is no different. Anyone who believed any of the rosy cost estimates for Obamacare was a fool. There’s no nice way to say it otherwise. This program, if let unchecked and not repealed, will help bankrupt this nation. Just like other national health programs in the socialist democracies around the world.

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