Obamacare’s Website Maker Tripled Cash Demands On US Government

Billionaire Serge Godin, founder and Executive Chairman of the Board at CGI, the company that made the Obamacare federal website, and a number of the largest state-run insurance exchange websites as well, saw his company's contract with the US government triple in size this year. Taking in almost a third of a billion dollars to build a website would seem a pretty good motivator for most firms to deliver a good product at the startup. But that isn't how things worked out for Obamacare, and US taxpayers. Maybe Godin could refund some of the money.
Reuters reported today that CGI, the key developer of the federal Obamacare website, tripled the value of its contract with the US government, going from an initial $93.7 million to “$292 million as new money was assigned to the work beginning in April this year.”

Costs mounted all year, as CGI, a Canadian company, struggled to keep up with the numerous changes in the system the government kept making. It is evident that the Obama administration knew the site was likely to be unready by October 1st, but pushed for the opening of the web-based insurance exchanges, likely because any delay would have been fodder for Obamacare critics.

As it turned out, in spite of the horrendous start to Obamacare’s online experience, the impact on people’s opinions has not yet moved hopelessly into the negative, chiefly because Republicans have been stupidly making American citizens choose between wanting Obamacare delayed or eliminated AND wanting the US government to stay open. Because Republicans worked tirelessly to distract Americans from the fact the Obamacare website rollout was a disaster, both President Obama and Obamacare itself actually improved in the polls, even though just a tiny fraction of the people visiting the insurance exchange websites have actually been able to enroll in new insurance policies.

Now that the government shutdown and the debt ceiling crisis have been pushed back for a couple of months, the American public may have more time to pay attention to the fact that after more than half a month, the Obamacare program is still effectively down for maintenance. Reportedly, even after people have reached the point in the system of being able to shop for insurance, there are no easy ways for customers to determine if the available policies even provide services and medicines they need. Add to this that many of the allegedly “affordable” policies, have huge deductibles, and the obligatory insurance coverage Americans must purchase seems a very bad deal in many cases.

Paying so much for so little was one of the warnings critics of Obamacare issued, and while government programs are not always so inefficient and ineptly launched, the Obamacare system rollout feeds right into the critique that government can’t do anything efficiently or well—except blow people up.

There is still no estimate from the Obama administration concerning how long it may be before the Obamacare web system is functioning properly. If it extends into weeks or months before the system can perform the task expected of it, that fact alone may sink Obamacare before it has even really begun.

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