ObamaCare exchanges now costing at least double initial projections

posted at 1:21 pm on April 11, 2013 by Erika Johnsen

A not-at-all surprising admission from President Obama’s budget release on Wednesday. We already knew that the administration’s mishandling of the whole situation was going to cost us, but Bloomberg reports on the more exact figures:

The $1.3 trillion U.S. health-care system overhaul is getting more expensive and will initially accomplish less than intended.

Costs for a network of health-insurance exchanges, a core part of the Affordable Care Act, have swelled to $4.4 billion for fiscal 2012 and 2013 combined, and will reach $5.7 billion in 2014, according to the budget President Barack Obama yesterday sent to Congress. That spending would be more than double initial projections, even though less than half the 50 U.S. states are participating.

The unanticipated spending is a consequence of an ambitious timetable dictated by Congress and a complex new way of offering people medical coverage, say analysts, lobbyists and administration officials. …

“Once you’re behind schedule, the way you solve problems is you write checks,” said Doug Holtz-Eakin, a former Congressional Budget Office director who is now president of the American Action Forum, which has opposed the health law.

The federal government was overly optimistic with their budgeting scenarios, say what? As HHS Secretary Sebelius mentioned the other day, they were really, truly hoping that some of those stubborn Republican-led states would drop all the political opposition after President Obama was reelected and volunteer to help them out with the exchanges — but why, why would you ever plan off of that scenario? They offered to build the exchanges if states declined, and now they’ve got all or part of 34 states’ exchanges on their hands. Shocker.

They’re delaying where they can, but at least the basic requirements of the health law need to be up and running by this January 1st. I foresee more check-writing in the near future.


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“Obooba himself is now costing about five times initial projections.” -Buck Ofama (R-Pennsyltucky)

Akzed on April 11, 2013 at 1:23 PM

Hey, wasn’t that a great concert at the White House?

They’re both so cool.

Drained Brain on April 11, 2013 at 1:23 PM

“Yes, we can brain” – this dummy is running you into the ground.

Schadenfreude on April 11, 2013 at 1:25 PM

By design, the costs will be prohibitively expensive, the ultimate goal, leaving all health care to be paid for by the “single payer” government.

But we already know that.

hawkeye54 on April 11, 2013 at 1:25 PM

“Obooba himself is now costing about five times initial projections.” -Buck Ofama (R-Pennsyltucky)

Give it another 6 months and the figure will bump up to 10x initial projections.

hawkeye54 on April 11, 2013 at 1:27 PM

Do You Think This Cares?

OhEssYouCowboys on April 11, 2013 at 1:27 PM

Obama to America: “Let me put on some gloves, get a little gel, and see if we find anything unusual here.”

BuckeyeSam on April 11, 2013 at 1:27 PM

Unexpectedly?

coldwarrior on April 11, 2013 at 1:27 PM

DAMN YOU BUSH!

Good Lt on April 11, 2013 at 1:27 PM

Obama to America: “Let me put on some gloves, get a little gel, and see if we find anything unusual here.”

BuckeyeSam on April 11, 2013 at 1:27 PM

The gel is a medical extravagance.

Insertion running hot, dry and steady.

OhEssYouCowboys on April 11, 2013 at 1:29 PM

We have to pay more to make it affordable.

Wigglesworth on April 11, 2013 at 1:30 PM

By design, the costs will be prohibitively expensive, the ultimate goal, leaving all health care to be paid for by the “single payer” government.

But we already know that.

hawkeye54 on April 11, 2013 at 1:25 PM

A few years from now Obama will blame the exhorbitant costs on Republicans and demand Congress “fix” the problem by passing single payer health care. He’ll dredge up older folks, the children, and the plethora of other excuses democrats routinley use to lie about what they really want to do.

darwin on April 11, 2013 at 1:30 PM

Nobody, whether for or against Obamacare, is surprised by this. Just another sign post on the road to Hell…

ROCnPhilly on April 11, 2013 at 1:31 PM

Rush Limbaugh stated yesterday he’s of the impression it fairly well planned. Based on actual critiques by J. Rockefellow about the implementation of exchanges going badly, he’s calling it early that it’s intended and designed to push people into saying, just give us the single payer plan and get it over with.

hawkdriver on April 11, 2013 at 1:32 PM

Nobody, whether for or against Obamacare, is surprised by this. Just another sign post on the road to Hell…

ROCnPhilly on April 11, 2013 at 1:31 PM

No really … there are some stupid people out there who actually believe Obama when he says stuff.

In fact, when he blames Republicans for this they’ll believe him.

darwin on April 11, 2013 at 1:33 PM

Correct me if I’m wrong, but can’t the House simply refuse to offer those additional funds?

Doughboy on April 11, 2013 at 1:35 PM

that it’s intended and designed to push people into saying, just give us the single payer plan and get it over with.

hawkdriver on April 11, 2013 at 1:32 PM

Drug companies are rushing to manufacture more pain pills for grandma and grandpa seeing as they’re not going to receive any other treatment. Hip replacement, cancer treatment and heart surgery is expensive doncha know.

Young liberals will just have to accept that mom and dad have to croak for the “common good”.

darwin on April 11, 2013 at 1:36 PM

Double? If we’re lucky.

gwelf on April 11, 2013 at 1:37 PM

Double? If we’re lucky.

gwelf on April 11, 2013 at 1:37 PM

Holy sh!t, this getting almost as expensive as Bush’s illegal wars. Somebody in the media ought to report on it 24/7.

antipc on April 11, 2013 at 1:38 PM

o/t

Two Democrats – Sean Riley and Curtis Morrison – with Progress Kentucky have ADMITTED to being responsible to bugging McConnell’s office per a Kentucky state Democratic Party official.

Resist We Much on April 11, 2013 at 1:39 PM

Drug companies are rushing to manufacture more pain pills for grandma and grandpa seeing as they’re not going to receive any other treatment. Hip replacement, cancer treatment and heart surgery is expensive doncha know.

Young liberals will just have to accept that mom and dad have to croak for the “common good”.

darwin on April 11, 2013 at 1:36 PM

Ain’t just the Baby Boomers that will get screwed. I am NOT looking forward to my disabled GF taking pain pills instead of what she needs, and at this point that’s all but assured for the future.

Hey ET, phone home and take a couple Earthlings with you? I promise we aren’t sick with liberalism.

MelonCollie on April 11, 2013 at 1:41 PM

They’re delaying where they can, but at least the basic requirements of the health law need to be up and running by this January 1st. I foresee more check-writing in the near future.

This monstrocity call Obiecare is not going to even get off the launching pad..:)

Dire Straits on April 11, 2013 at 1:41 PM

Progress Kentucky was behind the racist hits on McConnell’s wife.

Resist We Much on April 11, 2013 at 1:42 PM

He looks so stupid.

Schadenfreude on April 11, 2013 at 1:43 PM

Two Democrats – Sean Riley and Curtis Morrison – with Progress Kentucky have ADMITTED to being responsible to bugging McConnell’s office per a Kentucky state Democratic Party official.

Resist We Much on April 11, 2013 at 1:39 PM

They need to go to jail..Mother Jones needs to be probed as well as the Kentucky State Dem party..:)

Dire Straits on April 11, 2013 at 1:43 PM

Progress Kentucky was behind the racist hits on McConnell’s wife.

Resist We Much on April 11, 2013 at 1:42 PM

Leftists are racists.

Obama is the biggest divider the land ever had.

libnottobefree is the biggest racist on HA.

The break in will go unnoticed because it was from the tyrannical left.

Nixon is vindicated by the left, go figure.

Schadenfreude on April 11, 2013 at 1:44 PM

If anybody was in attendence at the Power Center on Main @ Post Oak in Houston when the honorable Al Green D-TX9 held his town hall meeting on Obamacare in August 2010…that was me that asked him if he could name a single government program that came in on the budget that was proposed in the legislation. I had cited the numbers Mr. Green had used to open his discussion.

He dropped all pretense of caring, began yelling like a preacher and waving his arms, got his SEIU army to begin the “Yes we can!” chants and thus ended his meeting.

I left the room with applause by the few that weren’t a part of the circus he had created.

DanMan on April 11, 2013 at 1:49 PM

MelonCollie on April 11, 2013 at 1:41 PM

Hang in there..There is hope this thing will still get cancelled as we find out more about what is in the bill and watch the Feds fumble and stumble trying to get this lead balloon off the ground..:)

Dire Straits on April 11, 2013 at 1:51 PM

ObamaCare exchanges will go the way of any other top-down, impersonal, overpriced, bureaucratic, one-size-fits-all, pie-in-the-sky, Utopian program. Corruption, cronyism, who-you-know, under-the-table transactions, people going without, complete disaster.

Paul-Cincy on April 11, 2013 at 1:54 PM

ObamaCare exchanges will go the way of any other top-down, impersonal, overpriced, bureaucratic, one-size-fits-all, pie-in-the-sky, Utopian program. Corruption, cronyism, who-you-know, under-the-table transactions, people going without, complete disaster.

Paul-Cincy on April 11, 2013 at 1:54 PM

So, then we’ll never get rid of it!

NavyMustang on April 11, 2013 at 2:03 PM

Spring turkey season opened in Wisconsin yesterday…here’s how it works: you sit in the woods and make calls that sound like a hen turkey. The tom turkey comes running thinking it is a real hen turkey. Then you blast him.

I don’t know why I posted the above since there doesn’t appear to be relationship to the story…or maybe there is…on ObamaCare matters we are all tom turkeys.

teejk on April 11, 2013 at 2:03 PM

_____(insert ill-advised Progressive policy here)_____ is getting more expensive and will initially accomplish less than intended.

The part left out, of course, is the unintended consequences, of which there will by many. No worries for Democrats, though. They will just blame the “free market,” “rich” people for not paying their “fair share,” and those eeevvvviillll insurance companies. The Legacy Media will regurgitate the talking points, as usual.

visions on April 11, 2013 at 2:04 PM

Justice Roberts, your legacy is secure. Just change your name to Mudd!!

Deano1952 on April 11, 2013 at 2:07 PM

“Once you’re behind schedule, the way you solve problems is you write checks,” said Doug Holtz-Eakin, a former Congressional Budget Office director who is now president of the American Action Forum, which has opposed the health law.

And you do that because the people you bring on are… not up to speed on the project, require spin-up time and… set the project back even further.

This is the second sign of a Death March project.

You cannot add people on to an existing project nearing its due date in any expectation it will get you there faster. It won’t. You will spend money AND delay your project even further. The Mythical Man Month is just that: Mythical.

If you want to get the project to its end point you need to start questioning what goes in it and pare down the list of ‘must have’ items even further. If you can’t do that, your project is dead no matter how much money you throw at it.

The finger-pointing is about to begin, project managers suddenly find other things to do, people leave the project…not because it is nearing completion, you wouldn’t leave early if it was going to SUCCEED. The race for the doors BEFORE the finger-pointing starts is about to begin.

ajacksonian on April 11, 2013 at 2:08 PM

The $1.3 trillion U.S. health-care system overhaul is getting more expensive and will initially accomplish less than intended.

Initially?

How about NEVER?

GarandFan on April 11, 2013 at 2:09 PM

Leftists are racists.

Schadenfreude on April 11, 2013 at 1:44 PM

Progressive Racism

Resist We Much on April 11, 2013 at 2:11 PM

Yes, Dire, your thoughts are more than hope.

The medicaid expansion while some governors thought HHS might consider some pilots, is cratering. And since the govt has been adament that even if the states do all the exchange work it still faces complete fed control even more exchanges will not get built. The exchanges will not be ready anywhere by this summer, which is when they need to be.

We have recently seen the impact the medical device tax has had and the scurrying Congress is doing to repeal it – especially by red state blue senators, who already are backed into a corner on guns. We have heard the small business portals aren’t ready and we also have seen money put back into medicare advantage. This thing is dying.

And here will come the coup de grace – employers who are providing insurance have discovered the way to pass along ALL the increased cost to their employees and deny them a subsidized exchange opportunity. In essence, your premium is going way up and you are not going to eligible for the subsidy. And your employer will face no tax.

Obamacare is going down because everythng the opposition said about it coming true – and there will be no single payer option.

Say goodbye to the new democrat majority. This will fall squarely on them. COuldn’t happen to bunchof nicer folks. Employers can even play it – and they will – as due to Obama.

Zomcon JEM on April 11, 2013 at 2:15 PM

Zomcon JEM on April 11, 2013 at 2:15 PM

Hear!..Hear!..Hope we are right..:)

Dire Straits on April 11, 2013 at 2:24 PM

just part of the plan to make a crisis, and save us with single payer

burserker on April 11, 2013 at 2:28 PM

Zomcon JEM on April 11, 2013 at 2:15 PM

That’s not what CNN and Oprah told me. You must be lying!

Archivarix on April 11, 2013 at 2:31 PM

From the article:

People Covered

The result is that the number of Americans projected to gain insurance from the law has already eroded, by at least 5 million people, to 27 million by 2017, the CBO said in February. In addition, as many as 8 million people will lose health-care plans now offered through their employers, almost three times more than the CBO initially projected.

So, what happens to those 5 million that will not gain from the law? Do they fall through the cracks, or do they have to pay for somehting they can’t afford, go into bankruptcy, and then get on the government doles for ‘free’ healthcare…what the administration really wants.

If you like your plan, you can keep it. – JugEars

Patriot Vet on April 11, 2013 at 2:37 PM

just part of the plan to make a crisis, and save us with single payer

There is reason for hope — it took a supermajority to pass it once. They don’t have that now. What do you think the chances are of getting single payer through the GOP run house, and (God willing) maybe the Senate too?

Bulls**t. Repeal first. Full repeal. Then we begin to talk about what comes next.

Hold to that like it’s the last hill on Earth.

Dirty Creature on April 11, 2013 at 2:46 PM

Holy sh!t, this getting almost as expensive as Bush’s illegal wars. Somebody in the media ought to report on it 24/7.

antipc on April 11, 2013 at 1:38 PM

The price of obamacare is going to dwarf every war America has ever fought, and it will likely outpace them all for casualties as well.

Utopia!

tom daschle concerned on April 11, 2013 at 2:53 PM

Correct me if I’m wrong, but can’t the House simply refuse to offer those additional funds?

Doughboy on April 11, 2013 at 1:35 PM

You are correct, Sir!

What’s your point?

riddick on April 11, 2013 at 3:04 PM

Math is hard!

tommytom02 on April 11, 2013 at 3:10 PM

The unanticipated spending

guffaw!

BobMbx on April 11, 2013 at 3:11 PM

Yay!! Free healthcare! /S

Sterling Holobyte on April 11, 2013 at 3:12 PM

Archivarix on April 11, 2013 at 2:31 PM

Well you know we mean conservatives – we lie all the time.

Burserker, there will be no push for single payor except amongst the the crazy left. Canada is running away from it – well a fast crawl anyway. There will never be a filibuster proof democratic majority in the Senate for another generation.

Zomcon JEM on April 11, 2013 at 3:13 PM

The price of obamacare is going to dwarf every war America has ever fought, and it will likely outpace them all for casualties as well.

Utopia!

tom daschle concerned on April 11, 2013 at 2:53 PM

Scary ain’t it?

Hey, on the plus side though we’re taking in record revenues taxes.

antipc on April 11, 2013 at 3:18 PM

Say goodbye to the new democrat majority. This will fall squarely on them. COuldn’t happen to bunchof nicer folks. Employers can even play it – and they will – as due to Obama.

Zomcon JEM on April 11, 2013 at 2:15 PM

Sorry if I don’t hold your optimism.

What will happen is that the people, prodded by the democrats and media, will just blame the “money-hungry” companies and insurance providers for “ruining everything”, and be used as the reason why the government MUST take over all healthcare right away… It can’t wait!!(have you heard that before?)

Sterling Holobyte on April 11, 2013 at 3:19 PM

Unexpectedly!

krome on April 11, 2013 at 3:22 PM

This is all going to plan. The Obamacare authors knew it wouldn’t work. The blame, of course, will be laid on private insurance companies. They had their chance; they failed. Only solution is single payer.

rgeaste on April 11, 2013 at 3:34 PM

Sterling Holobyte on April 11, 2013 at 3:19 PM

I appreciate your skepticism – and it is fairly earned. Here is the problem. The employers are going to have to break the bad news to employees – and trust me they won’t like it any more than the employers will enjoy giving them the news.

Many employers will provide background into what is happening, why the increases, why family coverage is getting real expensive, etc. They will all point to the act – and it is all Obama’s. Employees tend to trust their employers more than just about anyone else, especially in comparison to their trust of the media or government.

So savy employers to save their own skin and massage their employees will push real hard on this. Nothing the media can do to get in the way of this narative. It’s a captured audience. The subsidy of group health plans for family coverage (almost all plans cost more for singles relative to the benefits received) is ending. All thanks to Obamacare.

It is beautiful. I am still ticked off at Roberts because I believe he failed his oath – he should be removed from the bench and the bar. But the unintended consequence is that leaving Obamacare in place has just made the democrat’s position untenable – right before the 2014 elections. I am not suggesting the GOP can retake the Senate. But it looks like the GOP will gain house and senate seats from what I can see. People will really feel Obamacare for the first time in 2014 – less than a year before the election, after squandering his political capital on gun control that is going nowhere.

Zomcon JEM on April 11, 2013 at 3:35 PM

Two words.

Boon. Doggle.

The Schaef on April 11, 2013 at 4:23 PM

“It was a bright cold day in April, and the clocks were striking thirteen.”

― George Orwell, 1984

In related news, I bought a loaf of bread at the local grocer today and offered twice the value; just for kicks. A man should get used to being raped on his own terms…

Let it Burn.

Polish Rifle on April 11, 2013 at 8:12 PM

You had to pass it….

Hey libbies. Confirmed: You’re dupes and DUMBER THAN F-uck!

CW on April 11, 2013 at 9:59 PM

You cannot add people on to an existing project nearing its due date in any expectation it will get you there faster. It won’t. You will spend money AND delay your project even further. The Mythical Man Month is just that: Mythical.

…The race for the doors BEFORE the finger-pointing starts is about to begin.

ajacksonian on April 11, 2013 at 2:08 PM

The MMM is just as true now as it was when introduced 40+ years ago in my computer programming classes (not yet morphed into IT; we still had to teach students to write the code). Its foundations are older than that.
This is always what happens when the bosses & managers plan the project instead of the techs.

However, Leftist fingers will never point to the people actually responsible for the disaster, especially the digits belonging to the MSM.

AesopFan on April 11, 2013 at 11:54 PM

But the unintended consequence is that leaving Obamacare in place has just made the democrat’s position untenable – right before the 2014 elections. I am not suggesting the GOP can retake the Senate. But it looks like the GOP will gain house and senate seats from what I can see.

Zomcon JEM on April 11, 2013 at 3:35 PM

Remember when people were saying that what Roberts did would sink Obama in 2012?.

People will really feel Obamacare for the first time in 2014 – less than a year before the election, after squandering his political capital on gun control that is going nowhere.

Zomcon JEM on April 11, 2013 at 3:35 PM

You know, I hear you, and I really would like to believe that this happening would cause people to wake up, but then there is a part of me that just thinks that people will be willing to believe anything that the Obama administration tells them about this.
Not trying to be an Eeyore. Just a realist.

I am still ticked off at Roberts because I believe he failed his oath – he should be removed from the bench and the bar.
Zomcon JEM on April 11, 2013 at 3:35 PM

I do agree with you there.

Sterling Holobyte on April 12, 2013 at 1:31 AM

It is a fair concern – and you could be right. I just see a real strong headwind waiting to catch the democrats – and they right now have no idea what is coming – they really don’t. Just like they didn’t understand the medical device tax until it hit – and bit them in their districts back home. This will be a howling they do not expect – just like in 2010. We will of course see what happens.

Zomcon JEM on April 12, 2013 at 9:33 AM