White House awards Accenture HealthCare.gov contract
January 11th, 2014
07:59 PM ET
9 years ago

White House awards Accenture HealthCare.gov contract

Washington (CNN) - The Obama administration has tapped the world's largest consulting firm to take over its beleaguered Obamacare website.

Accenture, a consulting and technology services company with 281,000 employees and $28.6 billion in revenue, won the one-year contract to continue fixing HealthCare.gov, the online health insurance marketplace set up by the Affordable Care Act. The Centers for Medicaid and Medicare Services made the announcement Saturday.

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"As CMS moves forward in our efforts to help consumers access quality, affordable health coverage, we have selected Accenture to become the lead contractor for the HealthCare.gov portal and to prepare for next year’s open enrollment period. We are pleased that more than 1.1 million consumers already have enrolled in a private plan in the federal Marketplace thanks to existing efforts and look forward to working with all of our contract partners to ensure a smooth transition of this work," the agency said in a statement.

As lead contractor, the company will be in charge of not only improving the current site, but also preparing it for open enrollment next fall. The task includes 24/7 customer support, eligibility and enrollment functions, and transmitting the personal data in enrollment forms.

“We are honored to be part of the team of technology and healthcare companies and government professionals helping the federal government meet the healthcare coverage needs of its citizens,” said David Moskovitz, the chief executive of Accenture's federal services. “Accenture will bring deep healthcare industry insight as well as proven experience building large-scale, public-facing websites to continue improving HealthCare.gov."

CMS will pay Accenture $45 million for the initial phase of the contract. The two sides are still defining the extent of Accenture's work, and a final value for the contract will be decided then.

Obamacare's site launched on October 1, 2013, to disastrous reviews, as users experienced major problems accessing the site, creating profiles and selecting insurance plans.

The White House later fired the original contractor, CGI Federal, and it cut ties with the company Friday, choosing not to renew its contract.

CGI's original contract for HealthCare.gov was for two years and valued at nearly $100 million.

During testimony before Congress in October, CGI Senior Vice President Cheryl Campbell denied any wrongdoing by her company, telling legislators that it was not "unusual to discover problems" in a system with so many concurrent users that would need to be addressed after going live.

Fixes since have resulted in improved performance of HealthCare.gov. At the end of 2013, more than 2 million people had signed up for coverage, with about half enrolling through the federal marketplace, officials said.

–CNN's Brianna Keilar contributed to this report.

Filed under: Obamacare • White House
soundoff (158 Responses)
  1. Nodack

    Day after day these comment sections filled with angry rants. Everybody angry all the time about everything. What a waste of time.

    January 12, 2014 01:22 pm at 1:22 pm |
  2. Ron fisher

    Thought this outfit used to be Arthur anderson consulting are they ok now.

    January 12, 2014 01:38 pm at 1:38 pm |
  3. tom l

    Mallory is so clueless and such a blind partisan that she doesn't realize that her explanation about govt contracts is the exact problem inherent within the ACA. You can't get around govt beaucracy. And she will then most likely respond, cluelessly, that te govt isn't involved in healthcare and this is a transaction between private insurance and the individual. She'll probably throw an "ilk" or "rethug" in her reply too...

    January 12, 2014 01:41 pm at 1:41 pm |
  4. simplyput

    In its hayday with Enron, Arthur Anderson did something called "Snowballing" to get a project off the ground. Guess how much it cost....that would be $90 Million; exactly the cost for a one-year contract on the govt healthcare site. Is there an accountant in the room? An attorney?

    January 12, 2014 01:46 pm at 1:46 pm |
  5. barryinlasvegas

    They might be able to fix the site – but that doesn't fix Obamacare.

    January 12, 2014 04:02 pm at 4:02 pm |
  6. tom l

    I think the CEO of Accentire made almost 14 million last year. Damn 1 percentet! He should take at least 10 million and allocate that among all of the employees!! I think 4 million is enough. Isn't that right, Tampa??

    January 12, 2014 07:50 pm at 7:50 pm |
  7. Correctional Officer

    Just a minor update Arthur Andersen was the accounting firm. Andersen Consulting and Arthur Andersen had a disagreement on Arthur Andersen practices and split well before Enron ever happened. Andersen consulting lost the Andersen name and chose and became Accenture (a boon in disguise!). The second largest and most successful international consulting company... so dont mix the two...

    January 12, 2014 09:12 pm at 9:12 pm |
  8. Correctional Officer

    ummm....government contracting does not allow offshore outsourcing, so er... no developers from SE Asia, it will have to be Americans on the project. There are clearances requirements and all....

    January 12, 2014 09:21 pm at 9:21 pm |
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