cost $840 million, study finds
July 30th, 2014
05:23 PM ET
9 years ago cost $840 million, study finds

Washington (CNN) – The cost of developing the initially-troubled website Healthcare.Gov ballooned to $840 million due to poor planning and management by the federal government, a government audit found.

The Centers for Medicare and Medicaid Services, which oversaw the error-plagued website launch, “incurred significant cost increases, schedule slips, and delayed system functionality” because of poor oversight of the project, according to a report by the Government Accountability Office released Thursday.

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Those “cost increases” ran into the tens of millions of dollars, the report found.

A GAO official will testify at a House Energy and Commerce hearing Thursday that the task of building an online health exchange from scratch was made more difficult and expensive by compressed time frames and changing requirements.

The federal health exchange serves the 36 states that did not develop their own state programs.

After the disastrous, glitchy rollout of President Obama’s signature domestic achievement, a string of website repairs helped bring enrollment in the health care exchange to 8 million people – exceeding the government’s goal.

Filed under: Health care • Obamacare
soundoff (49 Responses)
  1. Name

    8,000,000 covered at a website cost of $840,000,000. Yeah, money well spent...

    July 30, 2014 10:05 pm at 10:05 pm |
  2. Tim

    This is a GOP ploy to have President Obama leave the white house as an in debt african american, than a successful Negro American!

    July 30, 2014 10:11 pm at 10:11 pm |
  3. jonconde

    Sniffit said "8 million covered = money well spent"

    We are talking about the website alone. No, not money well spent. Whether you are for or against the ACA, you need to realize this this was overspending at it's finest. This is ridiculous, it should never cost even a tenth of that to make a website, EVER!!! I can't believe someone can look at $840 million on a website and approve. You have your head so far in the sand it would take Hercules to pull you out.

    July 30, 2014 11:16 pm at 11:16 pm |
  4. Michael

    This is ridiculous. American greed at its finest. Please find one other web page development that cost $840,000,000.00. Someone gave the greenlight to overcharge our own government and of course just like Haliburton contracts they paid it. $840,000,000.00 to build an intangible object, a computer program if you will. This is retarded waste at its finest.

    July 30, 2014 11:40 pm at 11:40 pm |
  5. badtobone

    Between court cases and costs way above the number that was given by the president. His signature law is not looking so good.

    July 31, 2014 12:24 am at 12:24 am |
  6. Fsclcnsrvtv

    Psssssssttt...Sniffitt! Yeah, you! Guess what! 8 million people lost their insurance before the website finally started working, so where are we now? 10 million? So we're at a net gain of 2 million? Money well spent? Really?!?!?!

    July 31, 2014 12:43 am at 12:43 am |
  7. Stop wasting time

    There should never have been a federal exchange in the first place. State exchanges have been much more sucessful.

    July 31, 2014 12:56 am at 12:56 am |
  8. JimboCombo

    The true cost to our nation is more than these numbers will ever reveal.

    July 31, 2014 01:58 am at 1:58 am |
  9. Namelinda

    The Republicans probably had an inside group working on the website to sabotage it and prevent the Affordable Care Act from being successful. God is in control and he does not like ugly and is a staunch defender of the poor and has all the power in this world.

    July 31, 2014 02:04 am at 2:04 am |
  10. Adedeji Adekunle Clement

    WHITE HOUSE(HEAD), OBAMA'S JOB(body work -area(I), white house control... the white house should let him do his work(body) while they should also focus on there JOB too.

    July 31, 2014 02:27 am at 2:27 am |
  11. Matt

    So we spent 800 million, and now have 20 million more people covered with healthcare. That's great and all, but couldn't that 800 million have been spent better? It does not cost 800 million to build a website of any kind. Insanity.

    July 31, 2014 02:33 am at 2:33 am |
  12. Name

    I commend you three for staying on the sinking ship. Bravo brave souls.

    July 31, 2014 02:48 am at 2:48 am |
  13. Name JK. SFL. THE GOP HOWDEE GOWDEE SHOW with special guest ISSA the CLOWN

    It's working fine now DISPITE GOP constant SABATUAGE !!!!

    July 31, 2014 02:48 am at 2:48 am |
  14. Name

    Now can you take a million or two more with you?

    July 31, 2014 02:51 am at 2:51 am |
  15. Name

    Gotta love democrats and liberals. They've made deflecting responsibility a "liberal" art. Harharhar.

    July 31, 2014 02:52 am at 2:52 am |
  16. Kyle

    $840mil for a website is insane. Beyond insane. I'm going to assume $835mil went to pad some people's pockets? It's not uncommon for the proper bids to get overlooked in the buddy-system that is government contracts.

    Oh what's that you say? You once read an HTML for dummies book? You sound like the perfect guy to do this.

    July 31, 2014 03:59 am at 3:59 am |
  17. Nope

    Sniffit – how many of those 8 million enrolled are people who originally had policies but were forced to sign up due to their plans being cancelled due to Obamacare? A couple million? Either way, 8 million out of a population of 360 million is 2% of the population. $840 million on just the website piece only for 2% of the population? Yep! Money well spent!!!!!

    July 31, 2014 04:54 am at 4:54 am |
  18. MC

    Meanwhile The F35 has been overbudget for decades and at a cost of BILLIONS more and the GOPer scum just keep cashing their bribes.

    July 31, 2014 05:39 am at 5:39 am |
  19. @RI_Roger

    Every American should be outraged by the cost of this failed deployment. Worst part is another $300 to $400 million needs to be allocated to finish the job. This doesn't include the ongoing cost to maintain and update the site going forward.
    There is no other explanation than lack of leadership and engagement which wasted our hard earned tax dollars. How long do we accept this standard? This country is too good to allow this incompetence to continue.

    July 31, 2014 06:45 am at 6:45 am |
  20. TehDuck

    The aca, what a disaster. 5 years from now, we'll all just look back and laugh. Although right now its got me paying $300 more a month, $1500 more in deductibles, and gave me a whopping one plan to choose from. So I definitely can't laugh about it yet, as its a very real burden on my family. No money in savings since we've been forced in.

    July 31, 2014 07:14 am at 7:14 am |
  21. Funkae

    Obama could care less... Spend spend spend

    July 31, 2014 07:38 am at 7:38 am |
  22. DC Economics

    $840 million – that is only $800 million more than it is worth. A bargain by government standards

    July 31, 2014 07:39 am at 7:39 am |
  23. Rudy NYC

    Oh, when the saints.
    Oh, when the saints.
    Oh, when the saints come marching in.

    July 31, 2014 07:59 am at 7:59 am |
  24. Patches

    How's that F-35 coming along? How many millions of people has it helped?

    How many millions of Americans did the $6 trillion Iraq/Afghanistan war help? At least the veterans of those wars were taken care of in the VA system right?

    July 31, 2014 08:04 am at 8:04 am |
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