Obamacare Blows Another $600 Million Due to Incentivized Incompetence


Government should be restricted to minimal regulatory control and they should be required to be neutral. One thing they definitely should be doing is not operating welfare and entitlement programs. They’re bad at it, very bad and as a scathing new audit shows, Obamacare just blew hundreds millions of dollars in one year due to incentivized incompetence.

We were promised Obamacare would be partly paid for by the end of waste and fraud. They told us was so prevalent among private insurers when it suited their purposes and they were going to eliminate that. Who believed that? Who? Who?

The cost of the Obamacare enrollment system climbed to $2.1 billion last year in part due to waste.

A new government audit of the Centers for Medicare and Medicaid Services’ (CMS) management of contracts made with eight companies that helped build the Healthcare.gov website shows the 20 contracts “most critical to the website’s operation” – worth roughly $600 million in total – were unbelievably mismanaged.

Millions were wasted in lack of preparation, overruns, shoddy work, and just bad practices, according to a new Inspector General’s report.

The government employees who were responsible for the contracts were clueless for one thing. CMS had completely untrained staff handling multimillion dollar contracts – up to $130 million – according to the audit.

The audit accuses the public employees responsible for these contracts of flaunting federal oversight procedures, not indicating when contract deliverables were met, and not keeping accurate records of each project.

The IG report concludes that contractor delays and performance were not always identified; contractors incurred unauthorized costs; awards to contractors were given without having knowledge of said-contractors past performance. All of it was poorly documented, if it was documented at all, even in the case of “critical deliverables”.

Waste and fraud is the government’s middle name. They don’t eliminate it. Last year, they blew hundreds of millions of dollars setting up dot gov, something that has been done before. They can’t even replicate.

Luke Chung, a software developer in Virginia, told The Fiscal Times, “As I got more involved with the Healthcare.gov fiasco, my views changed from basic programmer incompetence to purposeful, systemic problems in the procurement system, which incentivizes large government contractors to make the mess they’ve made. As we saw with CGI Federal, they got paid extra for delivering a failed product.”

The government always incentivizes sloppiness, poor delivery and corruption from contractors. We have seen it with the EPA toxic spill. They don’t supervise and they don’t fire failures in general.

Phil Kerpen at The Federalist says that the failing state health insurance exchanges in Maryland, Massachusetts, Nevada, and Oregon wasted close to $1.2 billion in 2014.

Bernie Sanders’ Vermont wasted millions of federal and state tax dollars on a single payer health care. Even the far-left gave it up when they saw the massive tax increases needed to cover program costs.

The more the government is entrusted with this kind of power and these large sums of money, the more corruption we see.

The free market operates efficiently to survive. The government and its workers on the other hand are not accountable and they can always print more money. The taxpayers provide an unlimited ATM for their failed undertakings.

The entire concept of Obamacare is contrary to American principles. It makes us all wards of the state and doctors and insurance companies are now government employees. It sends the message that Americans are not responsible for their healthcare, the collective is. It’s another program that throws self-reliance and choice out the proverbial window in favor of a wasteful, irresponsible government that misuses the public’s funds with arrogance and impunity. The more power they have, the more they feel they have a right to your money and to use it any way they want.