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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IridiumRebel's picture

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

Hundred Dollar Bonus's picture

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

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?

Dear Infinity's picture

American made, boys! 


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

lewy14's picture

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

Gov => inverted meritocracy.

icanhasbailout's picture

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

Skateboarder's picture

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

tsx500's picture

repeat after me :  CLOWARD. PIVEN. STRATEGY.

LetThemEatRand's picture

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

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!?

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 :)

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.

Tijuana Donkey Show's picture

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

Fixed that for you

Boris Alatovkrap's picture

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

booboo's picture

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

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. 

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

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?


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.

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).

ACP's picture

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

A Nanny Moose's picture

but not at gunpoint. Big difference.

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?

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!

mofreedom's picture

It's already sad.

We are already done, over and out.

Cause We the Living cost too much.

No Bama.

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?

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.


Nothing but the truth.'s picture

No problem , just print some more.

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.

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.

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?

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.

Yen Cross's picture

  Otool Care.  We sign _u_ Up and shit!

Colonel Klink's picture

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

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.:


QQQBall's picture

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

FieldingMellish's picture

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

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?

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...

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.

Non Passaran's picture

Who did you do if not the lady?

chinoslims's picture

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

Caviar Emptor's picture

Obongo cares, ok? Obongo_care(s)•org

pragmatic hobo's picture

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

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....