Tag Archives: Health insurance marketplace

One Example Of Why ObamaCare Needs To Be Repealed Immediately

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The following excerpts are part of a Department of Health and Human Services Report from the Office of the Inspector General. The report states, “Colorado Did Not Correctly Expend Establishment Grant Funds For Establishing A Health Insurance Marketplace.” The report can be found on the Internet here.

The mission of the Office of Inspector General (OIG), as mandated by Public Law 95-452, as amended, is to protect the integrity of the Department of Health and Human Services (HHS) programs, as well as the health and welfare of beneficiaries served by those programs. This statutory mission is carried out through a nationwide network of audits, investigations, and inspections conducted by the following operating components:

Office of Audit Services

Office of Evaluation and Inspections

Office of Investigations

Office of Counsel to the Inspector General

The report explains why the agency did the review–the review was part of a series of reviews of establishment grants for State marketplaces across the Nation. You can read the details if you choose, but the details are not what is important here–what is important is that the Federal and State governments never work as well as the free market.

This is the list of what the review found:

1. The Colorado marketplace did not expend $9,678,635 of Federal establishment grant funds in accordance with Federal requirements. Specifically, the Colorado marketplace:did not adequately document $4,398,333 in costs that it charged to the establishment grants;

2. charged the establishment grants $4,504,799 for unallowable hardware and software operational support and maintenance contract costs whose periods of benefit occurred after December 31, 2014;

3. improperly transferred costs totaling $312,449 from one establishment grant to another without demonstrating that these cost transfers were performed to correct bookkeeping or clerical errors;

4. did not efficiently and effectively administer establishment grant funds totaling $463,054 consisting of improperly awarded executive and employee bonuses, overpayments to subgrantees, unallowable promotional giveaway items, excessive and unreasonable tips, vendor rebates that were received but not credited to the establishment grants, and unallowable social activities;

5. drew down establishment grant funds that it did not immediately use;

6. entered into contracts with consultants and other contractors that did not conform to Federal and State requirements and the Colorado marketplace’s own policies on contract administration, including approval procedures and required contract information; and

7. engaged in a number of procedures and practices that, contrary to Federal requirements and cost principles and, in some cases, to the Colorado marketplace’s own  policies, (1) required the use of personal credit cards to purchase equipment, supplies, and services for the marketplace, (2) permitted self-approval of purchases on behalf of the previous executive staff, (3) permitted incomplete and inadequate disclosure of possible conflicts of interest, (4) did not properly document inventory of equipment, and (5) allowed the use of establishment grant funds to purchase equipment for a previous Chief Executive Officer (CEO) who kept it for personal use when the CEO left the organization.

These findings were caused by a lack of adequate stewardship of Federal funds. Specifically, the Colorado marketplace had not developed, finalized, and implemented policies and procedures to ensure that it expended and accounted for establishment grant funds in accordance with Federal, State, and Colorado marketplace requirements.

This is a chart showing the bonuses given:

Ed Morrissey at Hot Air posted an article about this report today.

The article concludes:

Later in the report, the IG explains that this was spent on a holiday party, with “cake, punch, holiday cards, and decorations.” Why the Colorado exchange felt it necessary to charge the federal government for those expenses will be one of the more interesting explanations we’ll hear … if we ever do hear it. At any rate, such expenses are explicitly prohibited from federal grants, as the IG points out in the report.

The whole report is damning for the arrogance of the bureaucracy when it came to spending federal grant money, especially on a flop like ObamaCare. One has to wonder just how many other states have used their federal grant money in such a cavalier manner, and for little purpose in the end.

It might be a good idea to note at this time what the planned future of ObamaCare actually was. Had Hillary Clinton been elected as President, the Democrats in Congress would have acknowledged that ObamaCare had failed and suggested a single-payer (read that ‘government run’) healthcare program similar to what Canada and the U.K. have to replace ObamaCare. When Donald Trump was elected, things got complicated for the Democrats. As I write this, they are fighting to preserve ObamaCare long enough so that it can fail and be replaced by single-payer healthcare. Hopefully the Republicans will not let that happen and will repeal ObamaCare quickly.

Let’s get the government out of healthcare.

 

 

 

 

Using Taxpayer Money To Prop Up Health Insurance Providers

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Hot Air posted a story today with the following headline, “GAO report: HHS owes taxpayers billions in Obamacare reinsurance money.”

The article gives a synopsis of the story:

In 2014, the industry-funded reinsurance program was supposed to provide $10 billion to insurers and $2 billion to the federal Treasury. But when total collections from insurers amounted to only $9.7 billion, the Department of Health and Human Services opted to funnel all of the money toward insurers. The agency paid insurers $7.9 billion in claims for 2014, the first year of exchange coverage, and held over the remaining $1.7 billion for future payments.

Republicans asked the GAO to weigh in on whether or not HHS had the authority to interpret section 1341 of Obamacare in such a way that it could withhold payments to the Treasury. The GAO report concludes HHS clearly does not have the authority to do so:

ObamaCare has been a disaster from the beginning and will probably totally collapse under the next President. The problem then becomes how to rebuild the damage to American healthcare that ObamaCare has done. If Hillary is elected, we will go to total government healthcare. If Trump is elected, the hope is that he will lean toward a system that favors the free market.

The article concludes:

Just to put this in perspective, there have been weeks of stories about the scandal of phony accounts at Wells Fargo bank. That’s a legitimate scandal in which bank employees created millions of unauthorized new accounts (and credit cards) in order to secure bonuses for themselves. However, the total amount set aside for refunds in that case was $5 million dollars. That’s apparently how much customers were ripped off by the shady practices at Wells Fargo. For this legitimate scandal, Wells Fargo is paying over $150 million in fines and has already fired over 5,000 employees.

Meanwhile, the Obama administration withheld $3 billion dollars belonging to taxpayers and essentially redirected it to private companies. It has not paid back the money. It has not been punished for taking it without authorization. No one at HHS has been fired. And Elizabeth Warren is not demanding HHS Secretary Burwell resign.

Will there be any accountability for HHS and the Obama administration for what amounts to the intentional misdirection of billions of taxpayer dollars to the president’s pet project? Will the media devote 1/4 of the attention to this that it has to the Wells Fargo story? We shall see but my advice is don’t hold your breath waiting for it to happen.

I realize that this is not an exciting story, but it is an important story. Not only did HHS exceed its power, it essentially stole money from the taxpayers. This sort of behavior by government agencies needs to be dealt with severely.