An internal investigation by the HHS Inspector General into the awarding of contracts for developing the Obamacare public exchanges has revealed a flawed process.
The investigation showed that The Department of Health and Human Services failed to conduct background checks on prior work by companies awarded many of the Obamacare contracts and failed to require those same companies to be accountable for cost overruns, leaving taxpayers on the hook instead.
The report published Thursday by the Office of the Inspector General for HHS concludes those mistakes cost taxpayers more than $400 million in unexpected costs — essentially doubling the expected cost of building the exchanges in the first place.
The agency responsible, the Centers for Medicare and Medicaid Services (CMS), is the parent to the Center for Medicare and Medicaid Innovation (CMMI), which was granted a $10 billion slush fund by the Obamacare law to promote new payment systems through contracts and grants. Prepaid a ten year budget, the agency has little to no oversight.
If the federal exchange debacle is indicative of the level of competence we can expect from CMS, there is reason to fear the CMMI will be a haven for waste and abuse.
