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Obamacare Website Costs Top $1 Billion

Tyler Durden's picture


Although the GAO has made clear the limitations of its data, its $394 million tally for work through March 31 has been widely cited as the price tag for the entire launch of the "Affordable" Care Act. However, as Bloomberg's Peter Gosselin finds, looking at the full range of ACA-related contracts for just 10 firms, more than $1 billion worth of contract awards. Perhaps even more mind-blowing is that more than one third of the funds going to the top contractors working on the federal exchanges were awarded in the last six months - even as it was clear the project was failing.


As Bloomberg's Peter Gosselin notes,

In a typical IT project, spending ramps up to a peak, then trails off during the final phase.

This was not the case for the Obamacare websites,

The torrent of late spending — almost $352 million of $1 billion in awards to the top 10 contractors — indicates the magnitude of the work still to be done as opening day approached, and helps explain the information technology problems that have dogged the exchange system since its launch.

So, the government throws more taxpayer money at it...

In aggregate, the 10 firms won a third of their health law-related contract dollars in the six months ended Sept. 30.


Besides showing the rush to issue contract awards in the months leading up to the opening of exchanges, the BGOV analysis also revealed that the implementation of the health law is costing substantially more than generally is portrayed.


Although the GAO made clear that its study focused solely on the costs of implementing the federal exchanges and the data services hub, its $394 million tally for work through March 31 has been widely cited as the price tag for the entire launch of the law. But in looking at the full range of ACA-related contracts for just 10 firms, the BGOV analysis found more than $1 billion worth of contract awards.


And still they admit things are not going well...

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Tue, 12/03/2013 - 00:02 | 4208955 IridiumRebel
IridiumRebel's picture

ZeroCare will cost trillions when it's all sad and done. Lives will be cost too.

Tue, 12/03/2013 - 00:05 | 4208964 Hundred Dollar Bonus
Hundred Dollar Bonus's picture

I could have built that site on an iPhone app and would have only charged Michelle 20 mil.

Tue, 12/03/2013 - 00:11 | 4208981 dryam
dryam's picture

Is there an incentive to get it done right the first time, or is the incentive to screw it up so then the company can get paid extra to fix it?

Tue, 12/03/2013 - 00:17 | 4209004 Dear Infinity
Dear Infinity's picture

American made, boys! 


Oh wait... no, hm... Canadian made! CGI Federal.

Tue, 12/03/2013 - 00:23 | 4209017 lewy14
lewy14's picture

That's a billion dollars going to the worst coders and managers.

Gov => inverted meritocracy.

Tue, 12/03/2013 - 00:42 | 4209050 icanhasbailout
icanhasbailout's picture

Why would anyone want to actually finish this project when the gravy train is that rich?

Tue, 12/03/2013 - 00:46 | 4209058 Skateboarder
Skateboarder's picture

Furthermore, why would anyone actually want to touch that codebase? It's a kamikaze mission.

Tue, 12/03/2013 - 01:12 | 4209090 tsx500
tsx500's picture

repeat after me :  CLOWARD. PIVEN. STRATEGY.

Tue, 12/03/2013 - 01:19 | 4209096 LetThemEatRand
LetThemEatRand's picture

Shit, you could get a whole half day of QE for that $1B that OZerocare costs.  

Tue, 12/03/2013 - 01:25 | 4209113 Boris Alatovkrap
Boris Alatovkrap's picture

Game is call it "Catch of Falling Dagger". As more and more rush to complete inoperable project in unrealistic time frame with incompetent management, expense is not increase linear, but on asymptotic trajectory.

... but what is Boris know!?

Tue, 12/03/2013 - 04:22 | 4209340 carlin401
carlin401's picture

But in this case its win-win for all, there never can be a loser,...

It's a game that everyone can grow to love :)

Tue, 12/03/2013 - 07:56 | 4209476 GetZeeGold
GetZeeGold's picture



I'll take my chances with Nigerian hackers before I'd ever visit healthcare.gov.........I don't care how much money they're dumping into it.

Tue, 12/03/2013 - 11:50 | 4210108 Tijuana Donkey Show
Tijuana Donkey Show's picture

I'm taking my chances with Nigerian hackers when I visit healthcare.gov

Fixed that for you

Wed, 12/04/2013 - 14:04 | 4214233 Boris Alatovkrap
Boris Alatovkrap's picture

You are take chance with Kenyan fraudster when is visit Healthycare.gov. Fix that!

Tue, 12/03/2013 - 08:04 | 4209485 booboo
booboo's picture

Laundering taxpayer monies into political operative funds used to promote socialism in two easy steps.

Tue, 12/03/2013 - 01:35 | 4209130 monad
monad's picture

Fed claims 11,000 births over deaths every day for the last decade. Their maf skills are in the bidet with their integrity and their dentures, but this crime rakes in more congress cons, vote fraud and minimum 2.5 QE additional phony per capita expenses. 

Tue, 12/03/2013 - 08:59 | 4209539 max2205
max2205's picture

Do you know how many F35's you could buy for 1 bill?....3/4's....ain't no big deal bitchezzzzz

Tue, 12/03/2013 - 01:50 | 4209149 JohnG
Tue, 12/03/2013 - 08:44 | 4209528 kralizec
kralizec's picture


Tue, 12/03/2013 - 04:13 | 4209324 The Heart
The Heart's picture

"That's a billion dollars going to the worst coders and managers."

Naw, it was prolly about 10 mil that was wasted on the code talkers and their fwantastic bar tabs. The rest may have been cweverly distwibuted to the Oscambacare front companies under several fake social numbers benefiting the soetero-cia COMPANy some way maybe? The level of scam is mind blowingly surreal for sure. Sez the flea butt-bitter, scratch my arse, and isa do youza back. Or, here is ten million to micheels friend/front company, and theyza sends us back the rest, otay!

Easy peazy to finger out. Follow the money-god trail. Whoza gotza all da billions of dollars now?


Tue, 12/03/2013 - 04:24 | 4209342 Fiat Envy
Fiat Envy's picture

If memory serves CGI is the company that did the Canadian Long Gun Registry.  If so a billion is just a taste of things to come, they didn't ever start collecting yet.

Tue, 12/03/2013 - 02:42 | 4209217 SunRise
SunRise's picture

There is no incentive to "screw it up", because that company's competitor will be rewarded the cleanup work.  There is tremendous incentive to increase the amount of work performed by showing good enough progress to be awarded follow-on work for these typically incremental contracts.  This works much like the non-government world; except, the government steals the money from citizens by force; whereas, in private business, customers have to be persuaded that a given product is worth trading for their stored labor(money).

Tue, 12/03/2013 - 04:17 | 4209327 limit_less
limit_less's picture

Ill take option 2

Tue, 12/03/2013 - 00:11 | 4208987 ACP
ACP's picture

The millionollarhomepage.com just sits there and does nothing too, but it cost only a million dollars.

Tue, 12/03/2013 - 03:20 | 4209253 A Nanny Moose
A Nanny Moose's picture

but not at gunpoint. Big difference.

Tue, 12/03/2013 - 04:22 | 4209339 The Heart
The Heart's picture

"just sits there and does nothing too"

Actually, it is doing it's job most excellently. It is a giant vacuum cleaner designed to ONLY suck the victim for all the personal information anyone is stupid enough to feed into it, so as to profit from that info, as well as totally control the victim later. Imagine telling the chinese all you are doing, and giving them all your personal information like most do on face-cia-book.

Subliminal message on the oscambacare site: Thank you sucker...wanna do it again?

Tue, 12/03/2013 - 00:22 | 4209020 Eireann go Brach
Eireann go Brach's picture

Replace Obama with a cracked out Flavor Flav and put him in the White House with a team of midgets, and he could run the US better and get Obamacare off the ground!

Tue, 12/03/2013 - 00:18 | 4209003 mofreedom
mofreedom's picture

It's already sad.

We are already done, over and out.

Cause We the Living cost too much.

No Bama.

Tue, 12/03/2013 - 03:12 | 4209243 A Nanny Moose
A Nanny Moose's picture

Lives will be cost too.

What better path to a "5 Year Plan," in the face of retiring baby b00mers, than to control their Sick Care?

Tue, 12/03/2013 - 07:36 | 4209466 Cynthia
Cynthia's picture
The insurers are responding to the incentives and disincentives in ACA, and presumably the Obama administration knew that would happen (or in the alternate turned loose a program without knowing what would happen). Employers are looking at a weak labor market and are gladly shifting costs to employees. The real story of ACA is not healthcare.gov, that will blow over, the real story is the realignment of the provider network and and the cranking down on services and reimbursements. Like chess, think several moves ahead. The administration has.


Tue, 12/03/2013 - 10:13 | 4209749 Nothing but the...
Nothing but the truth.'s picture

No problem , just print some more.

Tue, 12/03/2013 - 11:11 | 4209950 DosZap
DosZap's picture

WHO cares?, it's a POS,designd as a POS.Only the POOR, and the RICH can afford it, it will be an EPIC FAIL for Americans, and a winner for the Commie Bstd.

Tue, 12/03/2013 - 00:04 | 4208959 Ralph Spoilsport
Ralph Spoilsport's picture

And no security designed in at all.


Tue, 12/03/2013 - 02:51 | 4209224 yogibear
yogibear's picture

This is a billion dollar booondoggle. Add billions more with overtime and extra charges.

Hackers need to get in and really F it up. Calling Valerie Jarrett to do political damage control.

Tue, 12/03/2013 - 03:23 | 4209258 A Nanny Moose
A Nanny Moose's picture

Thought experiment:

If my corporate DLP policy prevents leakage of Social Security numbers, but I am forced to "leak" SS#, and other private data to youcankeepyourplan.com, am I liable, when youcankeepyourdoctor.com is hacked, and all that data is leaked?

Tue, 12/03/2013 - 10:13 | 4209750 icanhasbailout
icanhasbailout's picture

By the way, I scooped CNBC on that by two weeks: http://thebullelephant.com/healthcare-gov-is-an-identity-theft-machine/


Of course I get zero credit for it, but hey.

Tue, 12/03/2013 - 00:03 | 4208960 Yen Cross
Yen Cross's picture

  Otool Care.  We sign _u_ Up and shit!

Tue, 12/03/2013 - 00:08 | 4208972 Colonel Klink
Colonel Klink's picture

I'm sure Moochelle's friend from college is enjoying the taxpayer graft for producing a failure of a website.

Tue, 12/03/2013 - 04:33 | 4209348 The Heart
The Heart's picture

"I'm sure Moochelle's friend from college is enjoying the taxpayer graft for producing a failure of a website."

Yes Sir, Colonel K!

There seems to be a lot of irons in this fiery scam to rip off the American tax payer. Remember when that clown bidder said, "this is a big f'n deal?"

Yeah, a tax, as the corrupted court of hell decreed.


THAT means a TAX on every single thing any one can buy (to keep the middle puppet profiteers happy) and lotza BIG KICK BACKS to the BIG NAZI FHARMA AND MEDICAL MAFIA INSURE-CIA-ANCE COMPANY(S).

Many irons  in the fire. Go figure.:


Tue, 12/03/2013 - 00:11 | 4208986 QQQBall
QQQBall's picture

I wonder what the second most expensive website is... I know it is .gov

Tue, 12/03/2013 - 00:14 | 4208992 FieldingMellish
FieldingMellish's picture

Most gov IT systems end up being money sinkholes for years and years as new legislation has to be coded in.

Tue, 12/03/2013 - 00:14 | 4208993 sixsigma cygnus...
sixsigma cygnusatratus's picture

At least the whores in Nevada like Obamacare.  That's gotta be worth something...


Tue, 12/03/2013 - 00:24 | 4209009 Yen Cross
Yen Cross's picture

 I've done the Nevada "whore house run". I'll send you the map. I never did the lady, and she thaught me a thing or two.

 The toughest part was leaving Tonopah back through the White Mountains!

   Things I did as a kid seemed trivial. Now they're just plain "respected".  Shootin birds for kin and all. (Dinner and such)

   Sound Familiar?

Tue, 12/03/2013 - 00:42 | 4209055 sixsigma cygnus...
sixsigma cygnusatratus's picture

Naw, never did the whore house run in Nevada, although the trip to DC several years back was kinda like that. Ah, so young, so foolish...

Tue, 12/03/2013 - 03:17 | 4209249 A Nanny Moose
A Nanny Moose's picture

Nevada = DC? Hopefully your Nevada trip was less painful, involved the correct orifice, and did not require KY applied to the preferred DC orifice.

Tue, 12/03/2013 - 07:20 | 4209446 Non Passaran
Non Passaran's picture

Who did you do if not the lady?

Tue, 12/03/2013 - 08:27 | 4209509 chinoslims
chinoslims's picture

I wonder if they get 1099 or W-2's?

Tue, 12/03/2013 - 00:15 | 4208996 Caviar Emptor
Caviar Emptor's picture

Obongo cares, ok? Obongo_care(s)•org

Tue, 12/03/2013 - 00:15 | 4208997 pragmatic hobo
pragmatic hobo's picture

shit ... that's one big gravy train ...

Tue, 12/03/2013 - 00:18 | 4209005 Theta_Burn
Theta_Burn's picture

Imagine the efficiency, the savings on healthcare costs, the envy of the world this program will be once you manage to get signed up..

Is there anything this admin has touched and not turned to shit?

There was a time when awarded a .gov contract, performancen reviews, and completion dates actually mattered.

A billion dollars....

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