Obamacare website gets $47 million price hike
December 11th, 2013
03:18 PM ET
9 months ago

Obamacare website gets $47 million price hike

(CNN) - The government has been cagey about revealing how much money has been spent to fix HealthCare.gov, but today officials revealed the overall price tag for the troubled Obamacare website has increased by $47 million.

In Washington jargon, it is called an “increase in the total amount obligated” rather than a price hike. But the end, result is the same.

An official with the Centers for Medicare and Medicaid Services, the agency that oversees the site, could not immediately explain the reason for the additional cost. But the official confirmed the amount of money “obligated” by the Obama administration for IT costs has increased in the past month.

Here’s the math:

In October, CMS Spokeswoman Julie Bataille said the total obligated for IT costs associated with the federal marketplace was “in the neighborhood of about $630 million.” Speaking on Capitol Hill on Wednesday, Health Secretary Kathleen Sebelius said the number is now $677 million.

She also updated Congress on the amount the government has spent so far.

In testimony on October 30, Sebelius told members of Congress that her agency had spent, or “outlayed,” $174 million in IT costs developing the website where consumers can buy health insurance under Obamacare, more formally known as the Affordable Care Act.

On Wednesday, she testified the website had cost the government $319 million through the end of October.

A CMS official told CNN the cost increase was due to more recent numbers, rather than a drastic increase in IT spending. That official confirmed $18 million was “outlayed” in October for “marketplace, hub and supporting IT services.”

Sebelius told Congress on Wednesday that the $319 million already spent by her agency is part of $677 million that has been obligated to cover all IT costs associated with the federal insurance exchange.


Filed under: Health care • Obamacare
soundoff (21 Responses)
  1. Dutch/Bad Newz, VA -aka- Take Back The House -aka- No Redemption Votes

    Well, the $300 million that hasn't been paid as of yet should go towards this $47 million. As far as the original designers of the site, they should not get paid the full amount of THEIR flawed website. That's just my opinion.

    December 11, 2013 03:26 pm at 3:26 pm |
  2. Malory Archer

    $677 million is less than three percent of the $24 billion – WITH A "B" it cost taxpayers for the rethugs to have their three-week long temper tantrum. At least Americans are getting something for that $677 million. What did we get for the $24 billion temper tantrum, besides the satisfaction of watching the rethugs' approval rating dip into single-digit territory.

    December 11, 2013 03:28 pm at 3:28 pm |
  3. Donna

    And the even worse news is that large parts of the site are still not implemented, like the part that actually handles the payment for the policy. Only total government incompetence launches a web site that doe snot allow for the payment of goods. Without payment, nobody has truly bought anything on this web site.

    Somebody in Obama's campaign contributor pool is ripping the country off for millions. Why isn't the Justice Dept. getting involved?

    December 11, 2013 03:40 pm at 3:40 pm |
  4. Che Lopez

    I am one of the Thankful people that this President is doing his best to get good healthcare for all! A website "glitch" how those pubs love that term, is nothing to people in the computer world. I can see the panic, for those who are not! THEY should be seeking a family member or friend to help if the computer is not their normal every day method of communication. I have worked on a computer most of my life and for something THAT IMPORTANT, I reached out for help and guidance to pick my heath care plan. I am happy with what I am seeing for just myself. My husband is covered by the VA. I have not chosen a plan just yet but saw three good ones and I will get back to you when I do!
    I AM 59.5 yrs old looking into the Medicaid Plans because of past health issues and I may be considered a disability claim.I voted for this President and I am NOT willing to give up on him as our President. I CAN remember the good that has been done & his achievements thus far and what his hopes & dreams are for our future. Don't let the "otherside" chatter and down right disrespect for this President get into your head. He is a good man and is trying to do the best for us all not just himself. Some out there care not about anyone other than their Teabags and songs for the elite!
    CALLING OUT TO THE PEOPLE WHO VOTED FOR PRESIDENT OBAMA, HE IS STILL WORKING FOR US AND WE NEED TO STILL BE GIVING HIM OUR SUPPORT TOO! – OBAMA-BIDEN! Still the inning ream!

    December 11, 2013 03:43 pm at 3:43 pm |
  5. Fair is Fair

    Malory Archer

    $677 million is less than three percent of the $24 billion – WITH A "B" it cost taxpayers for the rethugs to have their three-week long temper tantrum. At least Americans are getting something for that $677 million. What did we get for the $24 billion temper tantrum, besides the satisfaction of watching the rethugs' approval rating dip into single-digit territory.
    ---------
    Nice diversion. Typical, though.

    The bottom line is that $677 Million to develop a website is OBSCENE. Makes $600 toilet seats look like tag-sale prices.

    December 11, 2013 03:44 pm at 3:44 pm |
  6. Malory Archer

    Donna

    Somebody in Obama's campaign contributor pool is ripping the country off for millions. Why isn't the Justice Dept. getting involved?

    ++++++++++++++++++++++++++++++++++++++++++++++++++++

    They're still trying to wade through the backlog of all the real crimes committed by the previous occupant of 1600 Pennsylvania Avenue and his crew. Be patient – it's gonna take awhile to get through that mess before they can begin to tackle another so-called "Obama scandal".

    December 11, 2013 03:46 pm at 3:46 pm |
  7. Bill, Bloomington Il

    Malory, What am I getting out of that 677 million? Oh yeah. Higher premiums on my health insurance. Is the 677 million the CBO number? You can trust the CBO. I will not. Where is Obamas approval rating?

    December 11, 2013 03:54 pm at 3:54 pm |
  8. Gurgyl

    Ripping, Donna, already ripped off with Haliburton, nothing left any more, ripped to Iraq war costed TRILLIONS, Pakistan 38 billion dollars yearly for ten years, nothing left, go to bed, sleep. Idiot.

    December 11, 2013 03:57 pm at 3:57 pm |
  9. Jean

    according to Sebelius the price tag thus far for this piece of junk is $677 million. That's your money and mine ladies and gentlemen. I feel 100% confident in saying that if I had been responsible for putting this together and getting it up and runing knowing that the money was not mine but belonged to the American people I am darn sure I would have built a better website for at least less than half of what these jokers spent.

    December 11, 2013 04:04 pm at 4:04 pm |
  10. SNSpeer

    The feds have also caused the private sector and state governments to spend over half a billion dollars in an attempt to interface with O'Care. But why should they worry about disasters they've already managed to shift to someone else? After all, they don't lose sleep over wasting our tax dollars, and those they have to more or less account for.

    December 11, 2013 04:10 pm at 4:10 pm |
  11. O'drama ya Mama

    I believe it is still coming under budget

    December 11, 2013 04:12 pm at 4:12 pm |
  12. ora pike

    this is the best example of why government and especially someone who has never had to run a business-should stay out of any money decisions. A TOP FIRM COULD HAVE BUILT THE OBAMACARE WEBSITE THAT WORKED AND WAS SECURE FOR 10 MILLION-TEN MILLION-$10,000,000 NOT A TRILLION. It is like obama had government loan his friends $500,000,000 to build solar company and it just sold to china for $25,000,000-WHAT IS WRONG WITH THIS PICTURE. We want to save money and look at this-same thing for the battery company. GM–if they had done it the romney could have saved $200,000,000-he knows how to run a business-then sold the stock at less than market value????? wow-obama is the story of the man who grew watermelons-costs $2.00 to raise a melon and he could only sell them for $1.00–DO??? increased the number of melons grown each year. wow

    December 11, 2013 04:13 pm at 4:13 pm |
  13. The Real Tom Paine

    -Donna

    And the even worse news is that large parts of the site are still not implemented, like the part that actually handles the payment for the policy. Only total government incompetence launches a web site that doe snot allow for the payment of goods. Without payment, nobody has truly bought anything on this web site.

    Somebody in Obama's campaign contributor pool is ripping the country off for millions. Why isn't the Justice Dept. getting involved?
    **************
    As a self-proclaimed IT expert and patriot, why don't you offer to help? You seem to have an opinion on everything, so put your patriotism where your mouth is. And who might that someone be that you hint is getting rich? Care to share that information as a public service? Since you insist on clogging up space with partisan BS, why don't you do something useful?

    December 11, 2013 04:13 pm at 4:13 pm |
  14. Malory Archer

    Is is rather appropriate that the biggest fraud ever perpetrated on the American people is also accompanied by the biggest web site fraud in history. Obamacare, a ripoff no matter where you look, no matte rwho you are, unless you're one of the people getting healthcare paid for by others.

    December 11, 2013 04:17 pm at 4:17 pm |
  15. ThinkAgain

    This website was built by private sector contractors – blame them for gouging us, not the President.

    December 11, 2013 04:19 pm at 4:19 pm |
  16. Rudy NYC

    Donna wrote:

    Somebody in Obama's campaign contributor pool is ripping the country off for millions. Why isn't the Justice Dept. getting involved?
    ---------------------------–
    Seriously? Do you mistrust Darrel Issa that much that you prefer the expertise of Holder, instead?

    December 11, 2013 04:27 pm at 4:27 pm |
  17. Name jk. Sfl. GOP CRUZ lee&rubio 24billion dallar LOSS of your tax money conservatives,the garbage of America.

    Hey, if the GOP can flush 24 billion dallars down the tiolet in 16 days and you don't have this thread loaded with arrivals about that idiocy , don't worry about it!!!!!!!

    December 11, 2013 04:31 pm at 4:31 pm |
  18. stating the obvious

    Excuse me for stating the obvious, but weren't we, the taxpayers, paying her a heftyo 6 figure salary to be making sure this was done properly and that people were NOT bilking us, the taxpayers? The FIRST thing that needs to happen is HER FIRING and unceremonious walk to the door. Then somebody COMPETENT needs to take over and lead the effort and perfrom any investigations. Only in the government can somebody be this groslly incompetent in front of the whole world and keep their job.

    December 11, 2013 04:33 pm at 4:33 pm |
  19. Donna

    Rudy NYC
    Donna wrote:
    Somebody in Obama's campaign contributor pool is ripping the country off for millions. Why isn't the Justice Dept. getting involved?
    ---------–
    Seriously? Do you mistrust Darrel Issa that much that you prefer the expertise of Holder, instead?
    --

    I was hoping that there was SOMEBODY with competence and integrity in the Dept. of Justice but now that you say it, Eric Holder? He's even more incompetent and dishonest than Sebelius. Good point. Thanks for correcting my misplaced hopes and trust. Looks like the criminals in the Obmaa administration will get away with it again.

    December 11, 2013 04:45 pm at 4:45 pm |
  20. paul reynolds

    So the embedded terrorist Republicons who just LOST $24 Billion last month with their Shutdown ..
    are "Outraged" about $47 Million, with an M ..????

    priceless!!

    December 11, 2013 04:52 pm at 4:52 pm |
  21. paul reynolds

    How many Americans have signed up for Republi-NoCare or on their Website – ZERO..!???

    December 11, 2013 04:53 pm at 4:53 pm |