Audit finds Obama administration complicent in the Obamacare website fraud and cost overruns

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Finding out what’s in it: A federal audit has found that the Obama administration looked the other way, and in some cases even helped, while the contractors hired to create the Obamacare website committed significant fraud and negligence.

The investigation focused on nearly two dozen contracts considered to be most important to the operation of the website, which was supposed to create a marketplace that serves as a one-stop shop for health insurance. Instead, it’s had a multitude of problems that have been well-documented in the media. The deals to develop this federal insurance marketplace went mostly to eight politically connected companies that raked in north of $600 million, the IG’s report says. “As of March 31, 2014, CMS had identified 62 contracts that it had awarded to 35 different contractors to develop, implement, and operate the Federal marketplace,” the report states.

That means there are a lot of taxpayer dollars floating around for this cause. You’d think the government would select its finest employees to oversee the deals. Instead, CMS violated federal rules by assigning unqualified employees to oversee contracts worth more than $10 million, according to the audit. In one case an unqualified agency employee, who didn’t even have lower-level certification to supervise contracts over $25,000, oversaw a $130 million deal for more than a year. In a separate case documented by the IG, an unauthorized CMS worker allowed an eye-popping $28 million cost overrun that wasn’t even identified until the agency finally assigned a more knowledgeable staffer to take over the deal.

These atrocious examples are probably not the half of it because CMS couldn’t even provide investigators with routine documents that should have been readily available. That means there’s no telling the true magnitude of the damage. As for accountability, there appears to be none as is often the case in government. The Obama officials—former HHS Secretary Kathleen Sebelius and former CMS head Marilyn Tavenner—in charge of this boondoggle are both gone and it’s highly unlikely either will face any consequences.

Hey, what’s a little graft and embezzlement of tax dollars among friends? Besides, they are Democrats, and we always forgive Democrats for their corrupt practices. More important, it is never their fault. Bush and Reagan and that evil right wing conspiracy is obviously to blame.


  • D.K. Williams

    I’m sure this will be the lede on the big three network news shows. LOL.

  • Edward

    “Vast” right wing conspiracy, not evil conspiracy. It is a *vast* right wing conspiracy.

    So vast that not one right wing conspirator has cracked and spilled the beans — you know, the way Gruber did about the tiny left-wing conspiracy that counted on the stupidity of Democrat voters to help pass Obamacare. They *had* to have been thinking that it was the Democrat voters who were stupid, because the Republican voters had already figured out that the law was an audacious abomination and were already speaking out against it at town hall meetings all across the nation.

    It is amazing how this law is the perfect example of crony capitalism. From the original cronies, the insurance companies, to other cronies, including the website contractors, including all the (non-crony) companies that this administration has chosen to punish through selective implementation and enforcement of this anti-American law.

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