HealthCare.gov costs $840 Million so far

HealthCare.gov, the federal health-exchange website plagued with glitches at its launch, has already cost $840 million to build, according to a Government Accountability Office (GAO) review of two task orders and one contract related to building the system.

HealthCare.gov, the federal health-exchange website plagued with glitches at its launch, has already cost $840 million to build, according to a Government Accountability Office (GAO) review of two task orders and one contract related to building the system.

The cost overruns were incurred through a combination of inconsistent oversight and constantly changing requirements, according to testimony prepared by GAO’s Director of Acquisition and Sourcing Management, William Woods, who is scheduled to testify before a House Energy and Commerce Committee subcommittee Thursday.

“We found that CMS undertook the development of HealthCare.gov and its related systems without effective planning or oversight practices, despite facing a number of challenges that increased both the level of risk and the need for effective oversight,” Woods will say. “According to [Center for Medicare and Medicaid Services] program and contracting officials, the task of developing a first-of-its-kind federal marketplace was a complex effort that was exacerbated by compressed time frames and changing requirements.”

The testimony notes over $200 million in cost overruns from September 2011 to February 2014, when the estimated costs for the federal marketplace jumped from $56 million to more than $209 million and the cost of the data hub went from $30 million to almost $85 million.

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