American Elephants

The Failed State ObamaCare Exchanges: by The Elephant's Child

The disastrous rollout of ObamaCare continues apace, but the federal government spent more on broken stat-run exchanges than it did on its own troubled system. Fourteen states plus the District of Columbia established their own health insurance coverage under ObamaCare. Of those fourteen, seven remain dysfunctional, disabled or seriously underperforming. The development of those exchanges was funded by the federal government through a series of grants that totaled more than $1.2 billion —almost double the $677 million cost of the federal exchange.

Oregon: Spectacular failure. $48 million “early innovator” grant from the federal government, which hoped the exchange would be a model for other states. Delays, delays, delays. Consultants warned that it was headed for disaster. Total federal grants —$303 million.  I’m not sure that they have signed anyone up yet.

Maryland: Obama used Largo, Maryland as the background for a speech touting the benefits of ObamaCare. Maryland promptly turned out to be one of the worst in the nation. Announced this week it was terminating $193 million contract with Noridian Healthcare Solutions, its IT contractor. Officials now say the existing system is so flawed they may dump the whole thing.

Massachusetts: The state’s 2006 reform supposedly helped inspire the design of ObamaCare. They hired CGI, the same contractor who built the federal exchange. Technical glitches from day one. By January the state lagged further behind their original enrollment goal than any other state. Only 5,428 people signed up during the first 3 months, 0.8% of the first year goal. $135.6 million in federal grants, and an early innovator grant.

Vermont: The Affordable Care Act is not progressive enough for Vermont. State officials said they would pursue a single-payer program beginning in 2017. Failed launch, $165.2 million in federal grants, still not working. Calls for an investigation.

Minnesota: Exchange was glitchy on rollout, problems persisted for the next few weeks. 14 exchange officials received bonuses prior to launch, the director took a tropical vacation while the site struggled. Officials and contractors blame each other. Outside assessment warned that problems would not be fixed by the end of open enrollment on March 31. Total federal grants $153.7 million.

Nevada: One official described the failure of the exchange as ‘catastrophic’. The system enrolled just 16,000 of the 118,000 expected. Projections have been reduced to 50,000. State officials are said to be thinking of ditching their own exchange in order to join the federal system. Federal grants $83.7 million. (All lies, according to Harry Reid)

Hawaii: Hawaii’s exchange was taken down right after the launch, but enrollment remains exceedingly low. The state has signed up just 4,300 people for coverage, the lowest of all the states. Total federal grants $205 million.

All Democrat-run states, but that is surely just a coincidence. We can probably assume that those who have signed up are those most in need of health insurance, those with pre-existing conditions, and the healthy folks will wait for a better offer.  Those who signed up early will be the most costly.



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