06.01.15

Obamacare’s State Exchanges: ‘Overpromised And Under Delivered’

Massachusetts, Hawaii, California, Oregon, Colorado, And Minnesota All Face Problems With Their Obamacare Exchanges

 

Massachusetts Exchange: FBI Probe Subpoenas Massachusetts Health Connector Records 

MASSACHUSETTS: “Federal authorities have subpoenaed records related to the Massachusetts Health Connector, including a period covering the breakdown of the health care exchange's website, The Associated Press has learned.” (“Feds Seek Massachusetts Health Exchange Records,” WCVB, 5/7/15)

“The FBI and U.S. Attorney for Boston have subpoenaed records related to the commonwealth’s “connector” dating to 2010. This insurance clearinghouse was Mitt Romney’s 2006 beta version for ObamaCare’s exchanges, but updating the connector to comply with the far more complex federal law became a fiasco rivaling any of the other federal and state ObamaCare failures.” (“ObamaCare’s Big Dig,” Wall Street Journal, 5/10/15)

  • “Formed in 2006, the Connector needed to upgrade its website to meet the terms of the federal Affordable Care Act. But the new website, rolled out in October 2013, failed so disastrously that it had to be scrapped and rebuilt. Meanwhile, there was no way to determine whether people seeking coverage were eligible for government help, so the state moved them all into a temporary Medicaid program.” (“US Attorney Subpoenas Records Related To Health Connector,” Boston Globe, 5/7/15)
  • “A test before going public showed a 90% failure rate, and the new connector detonated on the launch pad. Some 320,000 residents attempting to gain coverage had to be dumped into a temporary “free” Medicaid program without any income eligibility determination. Pioneer pegs the total cost of the mess at around $1 billion. (“ObamaCare’s Big Dig,” Wall Street Journal, 5/10/15)

Federal Money To Massachusetts Exchange: $193,076,648

(“Total Health Insurance Exchange Grants,” Kaiser Family Foundation, 2014)

 

Hawaii Exchange: $205 Million Of Taxpayer Money Wasted 

HAWAII: “Hawaii may be forced to ditch its state-run healthcare exchange and direct all ObamaCare sign-ups to the federal government’s website this fall. (“Hawaii’s ObamaCare Exchange In Jeopardy,” The Hill, 5/15/15)

“Gov. David Ige (D) acknowledged this week that the state has still not found a way to address a major funding shortfall for its exchange, the Hawaii Health Connector, as well as a host of technical problems.” (“Hawaii’s ObamaCare Exchange In Jeopardy,” The Hill, 5/15/15)

“The Obama administration first warned Hawaii this spring that the state exchange was failing to meet federal standards for financial sustainability, IT support and eligibility enrollment system.” (“Hawaii’s ObamaCare Exchange In Jeopardy,” The Hill, 5/15/15)

“Critics of ObamaCare have been quick to condemn the $205 million spent to create the exchange.” (“Hawaii’s ObamaCare Exchange In Jeopardy,” The Hill, 5/15/15)

Federal Money To Hawaii Exchange: $205,342,270

(“Total Health Insurance Exchange Grants,” Kaiser Family Foundation, 2014)

 

California Exchange: ‘Long Wait Times, Erroneous Notices…Enrollment Glitches’ 

CALIFORNIA: “Covered California projects 1.48 million people enrolled and paying on their premiums next year. It wants to reach nearly 2 million by 2019.The state made little progress this year. California was one of the worst-performing states, with 1% net enrollment growth, according to a recent analysis by consulting firm Avalere Health.” (“Amid Slower Growth, California’s Obamacare Exchange Cuts Proposed Spending,” Los Angeles Times, 5/13/15)

“The recalibration comes after tepid enrollment growth for California during the second year of the Affordable Care Act. The state ended open enrollment in February with 1.4 million people signed up, far short of its goal of 1.7 million.” (“Amid Slower Growth, California’s Obamacare Exchange Cuts Proposed Spending,” Los Angeles Times, 5/13/15)

“Many consumers have complained about long wait times, erroneous notices and other enrollment glitches with Covered California.” (“Amid Slower Growth, California’s Obamacare Exchange Cuts Proposed Spending,” Los Angeles Times, 5/13/15)

“Health policy experts said that some uninsured folks still find health insurance unaffordable despite the health law’s premium subsidies.” (“Amid Slower Growth, California’s Obamacare Exchange Cuts Proposed Spending,” Los Angeles Times, 5/13/15)

“We are seeing higher attrition and ongoing difficulties in bringing new people into the market,” said Caroline Pearson, senior vice president at Avalere.” (“Amid Slower Growth, California’s Obamacare Exchange Cuts Proposed Spending,” Los Angeles Times, 5/13/15)

Federal Money To California Exchange: $1,065,212,950

(“Total Health Insurance Exchange Grants,” Kaiser Family Foundation, 2014)

 

Oregon Exchange: $305 Million In Taxpayer Money Wasted For Political Reasons 

OREGON: “Former Oregon Gov. John Kitzhaber was told in early 2014 that the Obamacare state health care exchange his administration spent $305 million building could be made operational. But his administration chose instead to scrap the project and seek a scapegoat to keep the fiasco from harming his re-election” (“Kitzhaber Scrapped Workable Oregon Health Exchange For Political Benefit,” Washington Times, 5/18/15)

“The materials… suggests federal tax dollars were sacrificed for political convenience.” (“Kitzhaber Scrapped Workable Oregon Health Exchange For Political Benefit,” Washington Times, 5/18/15)

“The memos suggest that the decision to scrap the project before it launched…was driven more by politics than merit” (“Kitzhaber Scrapped Workable Oregon Health Exchange For Political Benefit,” Washington Times, 5/18/15)

“The memos show Mr. Kitzhaber’s election campaign aides took the unusual step of instructing state officials on how to handle the Cover Oregon exchange project, especially when the project was abandoned just before its launch.” (“Kitzhaber Scrapped Workable Oregon Health Exchange For Political Benefit,” Washington Times, 5/18/15)

“The Oregon episode has spurred a significant legal battle, as the main contractor for the project, Oracle Corp., has accused state officials of engaging in conflicts of interest and exercising such poor oversight that it jeopardized a project that otherwise would have succeeded.” (“Kitzhaber Scrapped Workable Oregon Health Exchange For Political Benefit,” Washington Times, 5/18/15)

“Mr. Kitzhaber’s aides applied pressure to kill the project even though the governor had been told the exchange could be fixed and made operational.” (“Kitzhaber Scrapped Workable Oregon Health Exchange For Political Benefit,” Washington Times, 5/18/15)

Federal Money To Oregon Exchange: $303,011,587

(“Total Health Insurance Exchange Grants,” Kaiser Family Foundation, 2014)

 

Colorado Exchange: Higher Fees And Missed Financial Projects 

COLORADO: “The Connect for Health Colorado board of directors voted unanimously Thursday to raise the fees it charges on health insurance policies to bolster its finances as federal grants run out later this year.” (“Colorado Health Insurance Exchange Board Raises Fees On Health Plans,” Denver Post, 5/14/15)

“The state health insurance exchange raised the fee on 2016 plans purchased through its marketplace from the current 1.4 percent of premiums to 3.5 percent, the same rate charged on the federal exchange.”

“Basically, the exchange is teetering, and the question is, ‘Can this be shored up?’ ” said Republican Sen. Ellen Roberts, who chairs the committee that oversees Colorado’s exchange board. The cost of running the exchange’s call center is expected to reach $21.3 million for this year. The previous estimate was $13.6 million. (“Almost Half Of Obamacare Exchanges Face Financial Struggles In The Future,” Washington Post, 5/1/15)

Federal Money To Colorado Exchange: $178,931,023

(“Total Health Insurance Exchange Grants,” Kaiser Family Foundation, 2014)

 

Minnesota Exchange: ‘Overpromised And Under Delivered’ 

MINNESOTA: “The Office of the Legislative Auditor concluded that MNsure overpromised and under delivered in its first year.” (“Behind Tough MNsure Audit, Details Of More Problems,” Associated Press, 2/25/15)

“MNsure has missed big on one of its original selling points: getting more small businesses to offer insurance to employees. The government-run marketplace was expected to cover 155,000 people in small group plans by next year. That number was 1,405 earlier this month.” (“For MNsure, Attracting Small Businesses Is A Big Problem,” Star Tribune, 5/24/15)

“There’s been a broad concern about deterioration and declining participation among smaller employers, and it is fundamentally related to market leverage — they don’t have the market leverage to command the best deals in the marketplace,” said Joel Ario, managing director with Manatt Health Solutions and previously the top Obama administration official for developing health exchanges.” (“For MNsure, Attracting Small Businesses Is A Big Problem,” Star Tribune, 5/24/15)

“In April, the trade group for Minnesota’s nonprofit health insurers reported that the number of people covered through small group plans dropped by more than 16 percent in 2014, the steepest year-over-year decline in a decade.” (“For MNsure, Attracting Small Businesses Is A Big Problem,” Star Tribune, 5/24/15)

Federal Money To Minnesota Exchange: $155,020,465

(“Total Health Insurance Exchange Grants,” Kaiser Family Foundation, 2014)

 

State Exchange Flashback: ‘Colossal Failure’, ‘Fatally Crippled’, ‘Dysfunctional’

“Nearly half a billion dollars in federal money has been spent developing four state Obamacare exchanges that are now in shambles – and the final price tag for salvaging them may go sharply higher.” (“$474M For 4 Failed Obamacare Exchanges,” Politico, 5/11/14)

"Five states that launched health exchanges under the Affordable Care Act expect to spend as much as $240 million to fix their sites or switch to the federal marketplace, a Wall Street Journal analysis shows. Maryland, Massachusetts, Minnesota, Nevada and Oregon estimate the money will be needed to fix problems with troubled marketplaces or to join the federal exchange before the next enrollment period in November, according to an analysis of data provided by the state exchanges." ("Five State' Health-Care Exchange See Costly Fixes," Wall Street Journal, 6/3/14)

Oregon Exchange: “…Oregon has already opted to give up on its website and use HealthCare.gov. The colossal failure of Cover Oregon – which so far has cost $248 million in federal money – has prompted a probe by the General Accountability Office.” (“$474M For 4 Failed Obamacare Exchanges,” Politico, 5/11/14)

Maryland Exchange: “Maryland is a state that aspired to be another national model but ended up spending $118 million in federal funds on a fatally crippled exchange. It is in the process of trying to transition to the technology used by Connecticut’s system. It’s still unclear whether the move will meet federal approval. If not, Maryland would default to HealthCare.gov.” (“$474M For 4 Failed Obamacare Exchanges,” Politico, 5/11/14)

Massachusetts Exchange: “Massachusetts... could require more than $120 million on top of the $170 million it has already has been awarded.” (“$474M For 4 Failed Obamacare Exchanges,” Politico, 5/11/14)

 

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SENATE REPUBLICAN COMMUNICATIONS CENTER

Related Issues: Health Care, Obamacare