ObamaCare might well blow up by mid-March, according to government document

Do you ever get the sense that ObamaCare is analogous to an 8-year-old boy taking apart his grandfather’s railroad watch, only to discover when he has put it back together that there are a few parts left over?

Of course the website roll out was a disaster, but now the Health and Human Services Department has contacted, without taking bids, to turn over the website to another firm for a paltry $91 million atop the more than $600 million paid the failed contractor CGI, because CGI never built the “back end” of the computer system which was supposed to tie together the payments and IRS subsidies, according to Politico.

The HHS document that justifies the ouster of CGI for the newly contracted Accenture warns that, without fixes to the system, the whole thing could collapse:

CMS [Centers for Medicare & Medicaid Services] must immediately award a contract for these services under the auspices of the aforementioned exception to full and open competition because there is limited time to build this functionality and failure to deliver the functionality above by mid-March 2014 will result in financial harm to the Government. If this functionality is not complete by mid-March 2014, the Government could make erroneous payments to providers and insurers. Additionally, without a Financial Management platform that accounts for enrollments and associated program costs (i.e. Advance Premium Tax Credits (APTC), Cost Sharing Reductions (CSR), payments to insurance plans, etc.), that integrates with the existing CMS Accounting platform (HIGLAS), the entire healthcare reform program is jeopardized by significantly increasing the following risks:

• Creating erroneous estimates of budgeted and projected payments associated with operating the FFM;

• Inaccurate issuance of payments to health plans which could seriously put them at financial risk; potentially leading to their default and disrupting continued services and coverage to consumers;

• Inaccurate forecasting of Risk Adjustment, Reinsurance, and Risk Corridor; potentially putting the entire health insurance industry at risk; and

• Failing to support the end of the year reconciliation with IRS; leading to greater program costs for workarounds.

CMS believes the current FFM [Federal Facilitated Marketplace]development contractor is not going to be able to complete the development of the required functionality by the required date. The need for the FFM to perform the functions above by mid-March 2014 remains and the implementation dates for this functionality remain unchanged. CMS reached this conclusion in early December 2013 after the current contractor did not deliver software and services needed to process inbound effectuated enrollments to an Enrollment Data Store (EDS), perform duplicate enrollment checks, support enrollment reconciliation with FFM issuers, and perform payment calculations of Advance Premium Tax Credits (APTC) and Cost Sharing Reductions (CRS) for all Marketplace programs, state and Federal. [Emphasis added.]

Politico noted many of the 1.2 million people covered in federal exchange qualify for government subsidies, and those are supposed to be paid directly to insurers.

A top federal exchange official told a House panel recently the government will have to make those payments by using a workaround, “because we don’t have full functionality.” 

Now, don’t feel sorry for all those insurers who might not get paid, because, as Charles Krauthammer recently unearthed, buried in the 2.700-page ObamaCare bill is Section 1342, the “risk corridor” provision that mandates a taxpayer payout covering up to 80 percent of insurance-company losses. How do you think they got insurers to sign off on this actuarial table smashing endeavor?

Even with adverse selection, older and sicker people signing up, it is you and I who will pay through taxes or higher insurance premiums or both.

Nevada’s own Harry Reid played a significant role in crafting ObamaCare and jamming it through the Senate. Check his pockets and you might find a few missing cogs.

30 comments on “ObamaCare might well blow up by mid-March, according to government document

  1. nyp says:

    Yawn. You guys are really reaching the bottom of the barrel, paranoia-wise.

  2. I did not say it. HHS did.

    >

  3. nyp says:

    Tell ‘ya what – if the entire Affordable Care Act apparatus “blows up” in mid-March I will be among the first to admit that my nonchalance was misplaced.

    By the way – I hope you guys realize that risk corridors and reinsurance supports to stabalize actuarial and premium variations are also elements of the Medicare Part D program, the entire federal farm insurance program, and the terrorism insurance program. I assume that for the sake of consistency you also favor removing risk corridors and reinsurance support from those programs as well, even it means making those programs unviable.

  4. Those certainly make government unaffordable.

  5. Vernon Clayson says:

    The geniuses in government over-imagined, overstepped, and overreached on the “Affordable” Care Act and their only out is to throw ever more money at it. Even that won’t make it work, the American people aren’t as easily fooled as the Act’s planners believed, even giving it the less than official name “Obamacare”, didn’t con the same people that were conned by Obama’s hopey-changy BS, he had no more to do with devising this monstrous plan than I did. It was in the planning before he was born and anyone that believes he sat with the authors and poured over the legislation or considered the consequences on any part of it is beyond naïve. His part, as president, was to promote the idea to his low-information idolaters that “free” healthcare was at last at hand. I grant part of that is true as there will be “free” health care for the same people that have used, and abused, it all along, but as always, the devil is in the details, taxpayers must pay. I’ve said before that the non-compliant can be penalized, but even the most petty and devious politician has to know that it’s impossible to penalize 300 million people, and every penalty is lost votes.

  6. Milty says:

    “By the way – I hope you guys realize that risk corridors and reinsurance supports to stabalize actuarial and premium variations are also elements of the Medicare Part D program, the entire federal farm insurance program, and the terrorism insurance program. I assume that for the sake of consistency you also favor removing risk corridors and reinsurance support from those programs as well, even it means making those programs unviable.”

    You’ve got a deal, Nyp, let’s remove the risk corridors and reinsurance supports from all federal programs.

  7. Nyp says:

    Milty – I look forward to seeing the Republican politicians advocating the dismantlement of Medicare Part D and the federal agriculture program.

  8. Athos says:

    So do I, petey, so do I!

    That will be a glorious day for freedom.

  9. Athos says:

    Milty, let’s just remove the federal programs!

  10. Nyp says:

    There you go,Athos. We will finally be free of that tyrannical program that ensures that people over 65 get their prescription medication. Ohl, what a glorious day that will be!

  11. Athos says:

    I don’t know how old you are petey, but 65 year olds (and up) are quite capable of taking care of themselves.

    It’s called “self-reliant” and it was how we were raised,

  12. nyp says:

    Then good luck to you and your fellow seniors in paying for prescription drugs without Medicare Part D. You may have to occasionally choose between your meals and your medication, but isn’t choice what freedom is all about?

  13. MIlty says:

    “Milty – I look forward to seeing the Republican politicians advocating the dismantlement of Medicare Part D and the federal agriculture program.”

    You know as well as I do that that ain’t never gonna happen.

    Republicans sense that they’re going to take the Senate and hold the House in November, so they’re going to be cautious, not make waves, do nothing to risk the advantage that they perceive they have. To use a sports analogy, they’re going to follow Dean Smith’s four corners strategy and try to run out the clock without risking a mistake. North Carolina defeats Duke 12-8 (thank God the NCAA instituted the shot clock).

    My guess is that they’re not going to even try to push Mr. Krauthammer’s suggestion next month.

  14. nyp says:

    You are likely correct about the strategy. I’m not quite sure how my side will respond.

  15. MIlty says:

    If the Republicans rest on their laurels and play it safe, I don’t think the Democrats need to worry about losing the Senate.

    The Republicans are probabaly going to run on a strategy of meaningless platitudes somewhat along the lines of “Knowledge is Good” (Animal House). A former governor of your state tried to do this in 1948, and as a result his sure thing take it to the bank election to the presidency didn’t happen.

  16. nyp says:

    It is what happens when political parties become to corporate and bureaucratized. The “play it safe” imperative becomes too powerful to resist.

  17. Athos says:

    ” You may have to occasionally choose between your meals and your medication, but isn’t choice what freedom is all about?” YES, petey, YES!!

    By Jove, I think he’s finally GOT IT!

  18. nyp says:

    That’s is exactly, Athos: America is at its absolute apogee of freedom when 85 year-old widows with degenerative bone disease have the freedom to choose between affording their medication and affording to eat regularly. With Medicare Part D we are no more than a nation of slaves.

  19. Moody’s Investor Service has changed its outlook for the U.S. health care insurance sector from stable to negative, citing Obamacare’s rollout and the uncertainty it brings.

    Read more: http://www.washingtontimes.com/news/2014/jan/23/moodys-downgrades-health-insurers-citing-obamacare/#ixzz2rFw1or4v 

  20. Athos says:

    Dependents on the State, petey. Vassals to our Masters. Is that what you crave?

    And what the Masters give…… the Masters can take away.

    I’ll take freedom.

  21. nyp says:

    Who are these “Masters” to whom we are “vassals”?
    I was under the impression that we lived in a democracy and that if we didn’t like certain policies we could exercise our franchise to change both the polices and our leaders.
    So, who are these “Masters”?

  22. Athos says:

    Surely you’re familiar with the re-election stats of our current congress, petey. Not to mention the power of the IRS, and the NSA.

    If you don’t know who’s your Master, then there is very little hope for you, isn’t there? But then I’ve heard that ignorance is Bliss.

    And I’m sure you’ll fit right in to the blissful servitude our Masters from DC have for you! (like FREE health care!)

  23. Athos says:

    It’s FREE!

  24. Nyp says:

    So our elected Congressmen and Senators are actually our “Masters”. Who knew?

  25. That’s how they act.

  26. Athos says:

    Who knew? Well it sounds like it wasn’t you, petey!

    Uh-oh. I think that puts you in the “useful idiot” category.

  27. nyp says:

    Congressman Amodei acts like he is a Master and we are his vassels?

    Who knew?

  28. Athos says:

    Good job, petey, you’re starting to become enlightened.

    Now, keep going……

  29. Winston Smith says:

    Athos, Petey is just one of those Ft. Meade functionaries that are paid to spread the Gospel of Big Government throughout the land. He/she believes that such subservience to the state will help exempt him/her when the SHTF. Too bad loyalty only runs one direction for tyrants, something that the sheep in every era have had to learn the hard way.

    WiP; FiS; IsS; PiS

  30. Athos says:

    Gotta start teaching history to our kids.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s