Poor Oversight Marred Health Site’s Launch

via WSJ

The federal government skipped key contracting requirements when awarding hundreds of millions of dollars to build the troubled HealthCare.gov site, according to an inspector general’s report.

The investigation published Tuesday by the Office of Inspector General for the Department of Health & Human Services found the federal government failed to probe fully the past performance of CGI Federal Inc., a subsidiary of a Canadian information technology firm, before awarding it a contract to construct basic parts of the insurance enrollment site.

Federal officials also drafted agreements that left the government on the hook for whatever it cost contractors to complete their work, investigators said. Several big contracts including CGI’s ballooned to twice or three times the estimated cost.

HealthCare.gov is the main platform for people to buy insurance under the 2010 Affordable Care Act and apply for tax credits toward the cost of their coverage.

The report of work carried out by the Centers for Medicare and Medicaid Services, the HHS unit tasked with building the site, paints a picture of rushed and sloppy activity with poor oversight that didn’t meet the agency’s standards. The site launched in 2013 with many problems that initially crippled enrollments by consumers…

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Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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